Petrous Company Incurs Both Fixed and Variable Production Costs

question 7

Multiple Choice

Petrous Company incurs both fixed and variable production costs.Assuming that production is within the relevant range,if volume goes up by 28%,then the total variable costs would ________.

• A) increase by 28%
• B) remain the same
• C) increase by an amount less than 28%
• D) decrease by 28%

---

Definitions:

Professional Selling

The practice of selling products or services in a business-to-business context, focusing on meeting the professional needs of the buying organization.

Transaction Selling

A sales approach focused on completing a single sale or transaction rather than building a long-term relationship with the customer.

Realtor

A real estate professional who is a member of the National Association of Realtors and adheres to its strict code of ethics.

Service Quality

The measurement of how well a service meets or exceeds the expectations of customers, often considered essential for customer satisfaction and loyalty.