The Relevant Range of Zhang Company Is Between 110,000 Units

question 218

Multiple Choice

The relevant range of Zhang Company is between 110,000 units and 190,000 units per month.If the company produces beyond 190,000 units per month ________.

• A) the fixed costs will remain the same, but the variable cost per unit may change
• B) the fixed costs may change, but the variable cost per unit will remain the same
• C) the fixed costs and the variable cost per unit will not change
• D) both the fixed costs and the variable cost per unit may change

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Definitions:

Economic Growth

An increase in the production of goods and services in an economy over a period of time, often measured as the rate of increase in real GDP.

Law Enforcement

The system by which some members of society act in an organized manner to enforce the law by discovering, deterring, rehabilitating, or punishing people who violate the rules and norms governing that society.

Advanced Technologies

Modern and cutting-edge technologies that offer significant improvements over existing technologies in terms of performance, efficiency, or capabilities.

Expensive Labor

Refers to labor that has a high cost, often due to skills, experience, or wage regulations that increase the compensation required to employ workers.