If Output Increases by 60% and Is Still Within the Relevant

question 123

Multiple Choice

If output increases by 60% and is still within the relevant range, what will be the most likely result?

• A) Total variable costs will increase by 60%.
• B) Per-unit fixed cost will remain unchanged.
• C) Total committed fixed costs will increase by 60%.
• D) Total discretionary fixed costs will decrease by 60%.

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Definitions:

Cement

A binder, a substance used in construction that sets and hardens and can bind other materials together, commonly used in concrete to make buildings, roads, and other structures.

Clastic Sedimentary Rocks

Rocks that are composed of broken pieces of older rocks, sedimented together by processes like weathering and erosion.

Conglomerate

A sedimentary rock made up of rounded or semi-rounded fragments within a finer-grained matrix, often indicating a high-energy environment such as a fast-flowing river.

Sandstone

A sedimentary rock consisting of sand or quartz grains cemented together, typically red, yellow, or brown in color.