In 2013 LCL LLP is a manufacturer. It has one machine capable of producing 400,000 units per year. LCL currently produces just 4000 to 5000 units per month. The machine cost is a step cost, but it can be reasonably modeled as which type of cost?

Select one:

a. variable

b. fixed

6.In 2028, LCL has massively grown and now produces 3 million to 5 million units per month. The machines are essentially the same as in 2013. Machine cost can be reasonably modeled as what in 2028?

Select one:

a. fixed

b. variable