You are in the process of understanding a products cost composition. You notice that there are five major compinents: direct materials, direct labor, maintenance, equipment rental, and factory security. These costs may or may not change with the production level. A visualization shows you the unit costs for these items when the prodcution level is up to 10,000 units, 10,001 to 20,000 units, 20,001 to 30,000 units and 30,001 to 40,000 units. Based on this visualization, please answer the following questions.

1. Which of the following statement best describes the pattern of her unit director material cost given different production levels?

a. It decreases before 20,000 units but stays the same one it is more than 20,001 units

b. It increases with production levels

c. It decreases with production levels

d. It stays the same regardless of the production level

2. For factory security, how does the total cost change with production levels

a. It decreases than increases after 20,000 units

b. It stays the same regardless of the production level

c. It decreases with production levels

d. It increases with production levels

3. What is the total variable cost on the production level is 40,000 units

a. 4 million

b. 3 million

c. 2 million

d. 1 million