B) I) Under the classification of cost as variable of fixed for decision making, many are of the opinion that fixed cost

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B) I) Under the classification of cost as variable of fixed for
decision making, many are of the opinion that fixed costs are
irrelevant whereas variable costs are relevant cost. Is such an
opinion valid? Page 3 of 9 II) The data below shows the
forecast cost of production for the coming year for Mako-Mako at
varying levels of production. Expected units of production 160000
180000 200000 Direct material GHS 320,000 GHS 360,000 GHS 400,000
Direct Labour GHS 880,000 GHS 900,000 GHS 1000,000 Overheads GHS
1400,000 GHS 1540,000 GHS 1680,000 The cost function in the above
data applies up to the forecast value of 350,000 units of
production per annum. Required: i) Estimate the unit for each cost
element including variable cost per unit and total fixed
overhead. ii) Determine a total cost function for Mako-Mako
and the highest under maximum anticipated production