Porterhouse Company Has Both Fixed and Variable Production Costs

question 69

Multiple Choice

Porterhouse Company has both fixed and variable production costs. If volume goes up by 20%, how would that affect the total variable costs? (Assume all volumes are within the relevant range.)

• A)Would go up by some amount less than 20%
• B)Would go down
• C)Would remain the same
• D)Would go up 20%

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