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The Relevant Range of Orleans Company Is Between 100,000 Units

Question 33

Multiple Choice

The relevant range of Orleans Company is between 100,000 units and 180,000 units per month. If the company produces beyond 180,000 units per month:


A) the fixed costs will remain the same, but the variable cost per unit may change.
B) the fixed costs may change, but the variable cost per unit will remain the same.
C) the fixed costs and the variable cost per unit will not change.
D) both the fixed costs and the variable cost per unit may change.

Correct Answer:

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