Porterhouse Company incurs both fixed and variable production costs. Assuming the production is within the relevant range, if volume goes up by 20%, then the total variable costs would:

Question

Quizplus · Accepted Answer

Total variable costs change in direct proportion to changes in production volume. Therefore, if production volume increases by 20%, total variable costs will also increase by 20%.

Porterhouse Company Incurs Both Fixed and Variable Production Costs