Porterhouse Company Has Both Fixed and Variable Production Costs

question 90

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