Sugarland Candies manufactures jawbreaker caricies in a fully automated process. The machine that produces candies was purchased recently and can make 4,800 jawbreakers per month. The machine costs $10,000 and is depreciated using straight-line depreciation over 10 years assuming zero residual value. Rent for the factory space and warehouse and other fixed manufacturing overhead costs total $1,500 per month. Sugarland currently makes and sells 4,000 jawbreakers per month. Sugarland buys just enough materials each month to make the jawbreakers it needs to sell. Materials cost $0.30 per jawbreaker. Next year Sugarland expects demand to increase by 100%. At this volume of materials purchased, it will get a 10% discount on price. Rent and other fixed manufacturing overhead costs will remain the same. Read the requirements. Requirement 1. What is Sugarland's current annual relevant range of output? Sugarland's current annual relevant range of output is Oto 57,600 jawbreakers Requirement 2. What is Sugarland's current annual fixed manufacturing cost within the relevant range? What is the annual variable manufacturing cost? Sugarland's current annual fixed manufacturing costs = $ 19,000 Sugarland's current annual variable manufacturing costs = $14.400 Requirement 3. What will Sugarland's relevant range of output be next year? How if at all, will total annual fixed and variable manufacturing costs change next year? Assume that if it needs to Sugarland could buy an identical machine at the same cost as the one it already has. If the demand increases by 100%, annual production will have to increase to this amount of jawbreakers next year to meet the expected increase 96,000 Sugarland has two options: (a) leave demand in excess of the current capacity unfilled or (b) purchase an additional machine in order to moet demand. and the annual fixed costs will Should the company decide to go with if the company decides to go with option (a), the variable cost per unit produced will option (b), the variable cost per unit produced will decrease by the amount of the discount increase due to additional depreciation stay the same