Porterhouse Company incurs both fixed and variable production costs.Assuming that production is within the relevant range,if volume goes up by 28%,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 28%, total variable costs will also increase by 28%.

Porterhouse Company Incurs Both Fixed and Variable Production Costs