In a 2 page paper, please complete the following:Review the financial statements from Apple Inc…Identify fixed and variable cost and tell if there was an increase in variable and fixed cost thenDiscuss the fixed and variable costs used by your chosen company (4-5 each).Additional Info:To review, a variable cost is a cost that is subject to change based on the level of activities performed. A fixed cost is a cost that is not dependent on the level of revenue or production (e.g., depreciation, insurance, rent expense). Cost driversmeasure an activity level. If cost driver amounts increase, variablecosts will also increase. Conversely, fixed costs are not affected byincreases in cost driver amounts.Effects of Fixed and Variable CostsTo demonstrate the effects of fixed and variable costs, let’s assumethe following scenario: Lakeside Company produces surfboards. Thematerials for one surfboard costs $25. Lakeside Company leases storespace for $750 per month. Below are the effects of fixed and variablescosts per month. Let’s assume that Lakeside Company produces 50surfboards per month. We will also consider the cost scenario for 100surfboards produced each month.Production cost comparison – 50 Surfboards50 SurfboardsTotal Costs Per MonthAverage Cost/ 50 SurfboardsSurfboard production materials$1,250$1250Rent$750$750Total$2000$2000Production cost comparison – 100 Surfboards100 Surfboards = Increase in Production Total Costs Per MonthAverage Cost/ 100 SurfboardsSurfboard production materials$2500 $2500Rent$750$325Total$3225$2825Because of the increase in production, you will notice that variable costs increase to $2,500 for 100 surfboards. However, the fixed cost (rent) decreasesbecause the rent amount is applied to 100 surfboards rather than 50.This causes the fixed cost or rent to decrease for the average cost ofeach surfboard.