It is important for companies to know what their variableand fixed costs are. It

It is important for companies to know what their variableand fixed costs are. It is also important for managementaccountants andproduction managers to understand the relationship between activitylevels andfixed and variable costs. What are some examples of a companysfixed andvariable costs? Should a companys activity level decrease whatwill happen tototal fixed costs? What will happen to total variable costs?