If the company's volume doubles,the company's total cost will:
A) stay the same.
B) double as well.
C) increase but will not double.
D) decrease.

Name: If the company's volume doubles,the company's total cost will: A) stay the same. B) double as well. C) increase but will not double. D) decrease.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Current cost:
Total cost = Fixed cost + Variable cost
Total cost = $40,000 + $50,000 = $90,000
Cost per unit when volume doubles:
Total cost = $40,000 + ($50,000 x 2)= $140,000

If the Company's Volume Doubles,the Company's Total Cost Will