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

Question

Quizplus · Accepted Answer

Total variable costs increase in direct proportion to output increases, so if output increases by 60%, total variable costs will also increase by 60%, assuming the cost per unit remains constant.

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