Part II - 3 Marks Each - Total 12 Marks Costs are either fixed or variable. Describe the difference using examples. 2. Southron Inc. makes electrical appliances such as toasters and irons. The flexible (variable) cost per unit is $15. Fixed cost is $250,000 per month. The appliances are sold to retailers for $25 each, on average. To make a profit of $100,000, it will be necessary to sell how many units. 3. Certain assets are amortized or depreciated. Describe what this is and prepare an example 4. Describe retained earnings