BRT CO

Hello John, I've attempt the question BRT CO June 2011 and I have one small issue regarding the fixed cost Sales volume (boxes) less than 1 million 1–1.9 million 2–2.9 million 3–3.9 million Total fixed costs ($) 1 million 1.8 million 2.8 million 3.8 million General inflation is 3% 1. In the question the inflation was applied to ($) 1 million 1.8 million 2.8 million 3.8 million 2. Normally the fixed cost is fixed and therefore if in year 1 it is it was $1m, then it should be the same amount every year. However in the question each year there is a "new" fixed cost and inflation was applied to these "new fixed cost"