Orleans Company has a normal range of production volumes between 100 000 units and 180 000 units per month. That is considered the relevant range for production cost analysis. If the company expands significantly beyond 180 000 units per month, which of the following would be the most likely expectation?
A) The fixed costs will remain the same, but the variable cost per unit may change.
B) The fixed costs and the variable cost per unit will not change.
C) Both the fixed costs and the variable cost per unit may change.
D) The fixed costs may change, but the variable cost per unit will remain the same.
Correct Answer:
Verified
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