Dotball Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 4,700 per month. The machine costs $5000 and is depreciated using straight-line depreciation over 10 years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total $500 per month. Dotball currently makes and sells 3,700 jaw-breakers per month. Dotball buys just enough materials each month to make the jaw-breakers it needs to sell. Materials cost 20 cents per jawbreaker. Next year Dotball expects demand to increase by 100%. At this volume of materials purchased, it will get a 10% discount on price. Rent and other fixed manufacturing overhead costs will remain the same.

1. What is the current annual relevant range of output? a( 0 to 3700) b(0 to 4700) c( 0 to 44400) d( 0 to 56400) e(3700 to 4700) f(44400 to 56400)

2. What is Dotballs current annual fixed manufacturing cost within the relevant range? What is the annual variable manufacturing cost?

3. What will Dotballs relevant range of output be next year?