You are currently operating at a volume of 2,000 units with fixed costs of $200,000 and variable costs of $20,000. You have asked your analyst, Jeff, to estimate costs at a volume of 5,000 units. He estimates that at that volume, fixed costs would be $200,000 and variable costs would be $50,000. As you consider the possible accuracy of his fixed cost estimate, which one of the following concepts is most relevant?

Relevant range

Breakeven point

Contribution margin

Product margin