ue2. XYZ ltd is a manufacturing concern, currently using a machinery which has a semi variable cost of 450,000$. Currently it is operating at 40% capacity, producing 4000 units. If it increases its production, its cost will increase by 20% up to 80% of the production level, after that it will increase by 25% up to 90% of the output capacity and if it realises its full capacity, its cost will shoot up by 30%