The break-even graph shown below represents the cost structure associated with a flexible production process and one that is fixed (less flexible)

Using the information displayed in the graph, determine the cost structures associated with the two alternative production methods.

The Fixed alternative has a fixed cost of $17,000.
The Flexible alternative has a fixed cost of $28,000.
Their point of intersection is at an output volume of 55,000 units, which results in a cost of $41,750.
For the Fixed alternative, $41,750 = $17,000 + 55,000 × VC
VC = ($41,750 - $17,000 )/55,000
VC = $0.45

For the Flexible alternative, $41,750 = $28,000 + 55,000 × VC
VC = ($41,750 - $28,000 )/55,000
VC = $0.25