Dotball Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purchased recently and can make 4,600 per month. The machine costs $8,000 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 $1,400 per month. Dotball currently makes and sells 3,100 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 jaw-breaker. 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.

Requirement 1. What is Dotball's current annual relevant range of output? Dotball's current annual relevant range of output is 0 to 55,200 jaw-breakers

.Requirement 2. What is Dotball's current annual fixed manufacturing cost within the relevant range? What is the annual variable manufacturing cost?

Dotball's current annual fixed manufacturing costs = ?

Requirement 3. What will Dotball's relevant range of output be next year? How if at all, will total annual fixed and variable manufacturing costs change next year? Assume that if it needs to Dotball could buy an identical machine at the same cost as the one it already has.