11.   The fixed costs of manufacturing the new product are represented by the horizontal line since they are not influenced by the volume produced.

12.   A Fixed cost is assumed to be constant over all levels of output.

13.   Fixed costs will often only be fixed over a limited range of output and will tend to behave in a stepped rather than linear fashion.

14.   Fixed costs can present another problem.

15.   If fixed costs are shared between products a method of allocating and apportioning these costs to individual products must be introduced.

16.   -- Fixed costs do not change.

17.   In contrast fixed costs, it is assumed, will remain constant over activity levels and therefore unavoidable costs.

18.   Describe the circumstances when fixed costs are relevant to future decisions.

19.   The cost of the building, by its nature, is a fixed cost and is also an avoidable cost.

20.   However, it is likely that fixed costs would increase, but we have no available information to assess this possible option.