Patel Company incurs both fixed and variable production costs.Assuming the production is within the relevant range,if volume goes up by 15%,then the total fixed costs would ________.
A) increase by 15%
B) remain the same
C) increase by an amount less than 15%
D) decrease by 15%

Question

Quizplus · Accepted Answer

Fixed costs remain constant within the relevant range, therefore, they would not change with a 15% increase in production volume.

Patel Company Incurs Both Fixed and Variable Production Costs