Multiple Choice
Palmer Inc.currently produces 110,000 units at a cost of $440,000.Next year Palmer Inc.expects to produce 115,000 units.Palmer's relevant range is 100,000 to 120,000 units.If the cost is variable and 115,000 units are produced, the cost _____.
A) will stay the same
B) will increase to $460,000
C) will decrease
D) will be indeterminate
Correct Answer:
Verified
Correct Answer:
Verified
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