Jane Caplow owns a picture-framing shop, The Caplow Company.The average price she receives for a picture she frames for a customer is $120.This price must cover her average costs for a typical framed picture of $5 for glass, $2 for matting, and $13 for the frame, and $30 for the labor involved.She must also cover monthly expenses of $1,000 for rent and insurance, $200 for heat and electricity, $500 for advertising, and $3,500 for her salary.Caplow is consideringbuyingan automatic mat-cutting machine in order toreducethe number of hours of direct labor required to produce a framed picture.In considering this purchase, she should recognize this purchase will _____ Caplow's variable cost and _____ Caplow's fixed cost.

Question 4 options:

increase; decrease

increase; increase

have no effect on; have no effect on

decrease; decrease

decrease; increase