If a Company Must Expand Capacity to Accept a Special

question 159

Multiple Choice

If a company must expand capacity to accept a special order it is likely that there will be

• A) an increase in unit variable costs.
• B) no increase in fixed costs.
• C) an increase in variable and fixed costs per unit.
• D) an increase in fixed costs.

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Definitions:

Nucleus

The central and most important part of an object, movement, or group, forming the basis for its activity and growth, or in cells, a membrane-bound organelle that contains the cell's chromosomes.

Cell Membrane

The semipermeable membrane surrounding the cytoplasm of a cell, responsible for controlling the passage of substances in and out of the cell.

Substances

Materials or items with distinct physical or chemical properties.

Cytoplasm

The gel-like substance within a cell, excluding the nucleus, that contains organelles and is the site of numerous metabolic reactions.