Gumball Ltd. 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 $1,200 per month. Gumball currently makes and sells 3,700 jaw-breakers per month. Gumball buys just enough materials each month to make the jaw-breakers it needs to sell. Materials cost 10 cents per jaw-breaker. Next year the company 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. Required Requirement 1. What is the current annual relevant range of output? Gumball's current annual relevant range of output is 0 to 55,200 jaw-breakers Requirement 2. What is the current annual fixed manufacturing cost within the relevant range? What is the variable manufacturing cost? Gumball's current annual fixed manufacturing costs = $15,200 Gumball's current annual variable manufacturing costs = $ 5520 Requirement 3. What will the relevant range of output be next year? How will total fixed and variable manufacturing costs change next year? If the demand increases by 100%, annual production will have to increase to jaw-breakers next year to meet the expected increase. Gumball has two options: (a) or (b) How will total fixed and variable manufacturing costs change next year? Complete the statements below. and the annual fixed costs will Should the company decide to go with If the company decides to go with option (a), the variable cost per unit produced will option (b), the variable cost per unit produced will decrease by the amount of the discount increase due to additional amortization stay the same