If Production Volume Increases from 8,000 to 10,000 Units

question 36

Multiple Choice

If production volume increases from 8,000 to 10,000 units,

• A) total costs will increase by 20%.
• B) total costs will increase by 25%.
• C) total variable costs will increase by 25%.
• D) mixed and variable costs will increase by 25%.

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Definitions:

Nonpersonal Communication

Any form of message dissemination that does not involve direct personal contact, including mass media advertising, sales promotions, and public relations.

Identified Sponsor

In advertising, a sponsor whose name and identity is known and disclosed in the message to inform or persuade the audience.

Advertising

The action of calling public attention to products, services, needs, etc., through paid announcements by an identified sponsor.

Pioneering

The act of being among the first to explore, develop, or adopt new techniques, areas of knowledge, or technology.