If output increases by 60% and is still within the relevant range, what will be the most likely result?
A) Total variable costs will increase by 60%.
B) Per-unit fixed cost will remain unchanged.
C) Total committed fixed costs will increase by 60%.
D) Total discretionary fixed costs will decrease by 60%.

Question

Quizplus · Accepted Answer

Total variable costs will increase by 60% because variable costs change in direct proportion to changes in output within the relevant range.

If Output Increases by 60% and Is Still Within the Relevant