Singh Concrete Company owns enough ready-mix trucks to deliver up to 100,000 cubic metres of concrete per year (considering each truck's capacity, weather, and distance to each job). Total truck depreciation is $200,000 per year. Raw materials (cement, gravel, and so on) cost $25 per cubic metre of cement.

Required:

1.On your own paper, make a graph for truck depreciation. Use the vertical axis for cost and the horizontal axis for cubic metres of cement. Select the following amounts from the graph.

Depreciation cost of truck if it delivers 30,000 cubic metres of concrete in one year.

$fill in the blank 1

Depreciation cost of truck if it delivers 70,000 cubic metres of concrete in one year.

$fill in the blank 2

2.On your own paper, make a graph for raw materials. Use the vertical axis for cost and the horizontal axis for cubic metres of cement. Select the following amounts from the graph.

Cost of raw materials for 2,000 cubic metres of concrete.

$fill in the blank 3

Cost of raw materials for 5,000 cubic metres of concrete.

$fill in the blank 4

3.Assume that the normal operating range for the company is 90,000 to 96,000 cubic metres per year. Classify truck depreciation and raw materials as variable or fixed costs.

Truck depreciation

Raw materials cost