Use the Interactive Graph to answer the following questions:

Lotts Company provided the following information on costs and units produced.

Unit variable cost	$4.00
Total fixed cost	$6,000

The graph shows unit variable cost, unit fixed cost, and unit total cost for production ranging from 500 to 3,500 units using the above unit variable and total fixed costs.

The above data correspond to which type of cost?

- Select your answer -Fixed costVariable costMixed costItem 1

Now, using the graph and numbers, change the variable cost per unit to $3. What happens to the: total variable cost, total fixed cost, total cost? Did each one increase, decrease, or remain unchanged?

Total Variable Cost	Total Fixed Cost	Total Cost
- Select your answer -IncreasedDecreasedUnchangedItem 2	- Select your answer -IncreasedDecreasedUnchangedItem 3	- Select your answer -IncreasedDecreasedUnchangedItem 4

Reset the unit variable cost to $4.00 and change the total fixed cost to $5,000. What happens to the: total variable cost, total fixed cost, total cost? Did each one increase, decrease, or remain unchanged?

Total Variable Cost	Total Fixed Cost	Total Cost
- Select your answer -IncreasedDecreasedUnchangedItem 5	- Select your answer -IncreasedDecreasedUnchangedItem 6	- Select your answer -IncreasedDecreasedUnchangedItem 7

Continue to change either the unit variable cost or the total fixed cost to see what happens to the: total variable cost, total fixed cost and total cost lines.

Based on your analysis answer the following questions:

If the total fixed cost increases, the total costs will - Select your answer -increasedecreaseremain unchangedItem 8 and the total variable costs will - Select your answer -increasedecreaseremain unchangedItem 9 .

If fixed cost decreases, the total costs - Select your answer -increasedecreaseremain unchangedItem 10 and the total variable costs will - Select your answer -increasedecreaseremain unchangedItem 11 .

If the unit variable cost increases, the total variable costs will - Select your answer -increasedecreaseremain unchangedItem 12 , the total fixed costs will - Select your answer -increasedecreaseremain unchangedItem 13 , and total cost will - Select your answer -increasedecreaseremain unchangedItem 14 . If the unit variable cost decreases, the total variable costs will - Select your answer -increasedecreaseremain unchangedItem 15 , the total fixed costs will - Select your answer -increasedecreaseremain unchangedItem 16 , and total cost will - Select your answer -increasedecreaseremain unchangedItem 17 .

If the slope of the total variable cost line pivots upward to the left, it must be that the - Select your answer -variable rate has decreasedtotal fixed cost has increasedvariable rate has increasedtotal fixed cost has decreasedItem 18 .

If the total cost line intercept with the y-axis has increased while the slope remains unchanged, it must be that the - Select your answer -variable rate has decreasedtotal fixed cost has increasedvariable rate has increasedtotal fixed cost has decreasedItem 19 .