Long description
The first graph shows fixed and variable costs. The vertical axis is labeled "Costs" and ranges from 0 to 4,000,000 dollars in increments of 1,000,000. The horizontal is labeled "Units of output" and ranges from 0 to 20,000 in increments of 5,000. A line parallel to horizontal axis at cost equals 375,000 dollars shows the fixed cost. An upward sloping line from the origin shows the variable cost. The line crosses the cost of 3,000,000 for 20,000 output units. The variable cost shown is as follows:
Variable costs equals variable cost per unit times units produced equals 160 dollars times 20,000 equals 3,200,000 dollars.
An upward sloping line from the fixed cost shows the total cost. The line crosses the cost of 3,500,000 for 20,000 ...
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