Perez Company incurs annual fixed costs of $99,500 and variable costs for Perez's products.
a) Define and explain the concept of fixed costs in the context of Perez Company.
b) Define and explain the concept of variable costs for Perez's products.
c) If Perez produces and sells a certain quantity of products, how would you calculate the total cost, considering both fixed and variable costs?
d) Discuss how changes in production volume might impact the total costs incurred by Perez Company.