Barry's Breakfast Treats has been selling only plain and cream-filled donuts. Barry believes he can increase his sales by adding a healthy-choice muffin to his menu. He will incur some additional costs such as ingredients, muffin pans and advertisement on the local TV station. Which of the following statements is false? a. Barry's fixed costs will probably increase.
B) Barry's total variable costs will probably increase
C) Barry should add the muffin only if the increased contribution margin exceeds the increase in revenues.
D) Barry should add the muffin only if the increased contribution margin exceeds the increase in fixed costs.
E) All of the above statements are false.

Question

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The Answer of Barry's Breakfast Treats has been selling only plain and cream-filled donuts. Barry believes he can increase his sales by adding a healthy-choice muffin to his menu. He will incur some additional costs such as ingredients, muffin pans and advertisement on the local TV station. Which of the following statements is false? a. Barry's fixed costs will probably increase.
B) Barry's total variable costs will probably increase
C) Barry should add the muffin only if the increased contribution margin exceeds the increase in revenues.
D) Barry should add the muffin only if the increased contribution margin exceeds the increase in fixed costs.
E) All of the above statements are false.

Barry's Breakfast Treats Has Been Selling Only Plain and Cream-Filled