QUESTION TWO a The costs of operating the canteen at 'Eat a lot Company' for the past three months (December 2021 to January 2022) is as follows. Month Cost K Number of Employees December 2021 293,750 1,250 304,500 1300 January 2022 February 2022 277,625 1,175 REQUIRED: a) Calculate: i. ii. The variable cost (per employee per month). [4 marks] The fixed cost per month. [3 marks] The total cost for the month of March 2022 assuming that the total number of employees in March were higher than the December 2021 by 20%. [5 marks] iii. Page 2 of 3 b) DG Co has recorded the following total costs during the last five years. Year Output (units) Total cost 2018 65,000 145,000 K 2019 80,000 162,000 2020 90,000 170,000 2021 60,000 140,000 2022 75,000 160,000 REQUIRED: Calculate the total cost that should be expected in 2023 if output is 85,000 units. [4 marks] c) In your own words and supported by a practical example, briefly explain why the relationship between output and fixed cost per unit is said to be inverse. [2 marks] [Total 20 marks]