Porterhouse 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%
A
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Truckel, Inc. currently manufactures a wicket as its main product. The costs per unit are as follows:
Direct materials and direct labor $11 Variable overhead 5 Fixed overhead 8 Total $24 Saran Company has contacted Truckel with an offer to sell it 5,000 of the wickets for $18 each. If Truckel makes the wickets, variable costs are $16 per unit. Fixed costs are $8 per unit; however, $5 per unit is unavoidable. Should Truckel make or buy the wickets? a) Make; savings = $5,000 b) Make; savings = $10,000 c) Buy; savings = $15,000 d) Buy; savings = $5,000
Personalty is anything that is the subject of ownership other than real estate.
a. true b. false