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At the 120­seat Riverside Restaurant, Total Variable Costs for September

Question 7

Multiple Choice

At the 120­seat Riverside Restaurant, total variable costs for September were $12,000. For October, the manager expects to sell 10 percent more meals than in September. If the increase in sales volume occurs, the manager should expect the total fixed costs for October to be:


A) lower than in September.
B) higher than in September.
C) relatively the same as in September.
D) impossible to forecast with any accuracy.

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