Figure 2-12 Information from the Records of the Scully Company

question 77

Multiple Choice

Figure 2-12 Information from the records of the Scully Company for July 2011 was as follows:
Scully Corporation produced 20,000 units.
-
Refer to Figure 2-12.If production increased to 32,000 units next year, what is the effect on variable product costs per unit and total product costs per unit respectively?

• A) remain the same; decrease
• B) remain the same; remain the same
• C) increase; remain the same
• D) decrease; increase

---

Definitions:

Burrow-Dwelling

Organisms or animals that live in holes or tunnels they either make or find in the ground.

Arctic Tundra

describes a cold, treeless biome found in the Arctic regions, characterized by permafrost, minimal precipitation, and short growing seasons.

Thick Fur

A dense layer of hair on animals that serves as insulation against cold temperatures and water.

Permafrost

A thick subsurface layer of soil that remains frozen throughout the year, occurring chiefly in polar regions.