Snead IncCurrently Produces 120,000 Units at a Cost of $400,000

Multiple Choice

Snead Inc.currently produces 120,000 units at a cost of $400,000.Next year Snead Inc.expects to produce 145,000 units.Snead's relevant range is 100,000 to 150,000 units.If the cost is fixed and 145,000 units are produced, the fixed cost _____.

A) will stay the same
B) will increase to $460,000
C) will decrease
D) will be indeterminate