Cool-It Company manufactures and sells commercial air conditioners. Because of current trends, it expects to increase sales by 10 percent next year. If this expected level of production and sales occurs and plant expansion is not needed, how should this increase affect next year's total amounts for the following costs. Variable Costs Fixed Costs Mixed Costs

Question

Quizplus · Accepted Answer

Variable costs will increase with increased production and sales. Fixed costs remain unchanged as they do not vary with production levels. Mixed costs will increase due to their variable component.

Cool-It Company Manufactures and Sells Commercial Air Conditioners