You have just received an email from the Chief Accountant $($Mekki$)$ who now believes that fixed factory overhead costs of P$30,400$ is in fact a stepped fixed cost, and will change at each activity level of $2000$ units.

i$)$ You are to elaborate your understanding of stepped fixed costs $(2)$

ii$)$ You are also required to explain the effect of the above information on the cost per GTY unit at activity levels of $1,400$ and $1,800$ units