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Porterhouse Company Has Both Fixed and Variable Production Costs

Question 90

Multiple Choice

Porterhouse Company has both fixed and variable production costs. If volume goes up by 20%, how would that affect the total variable costs? (Assume all volumes are within the relevant range.)


A) Would go up 20%
B) Would remain the same
C) Would go up by some amount less than 20%
D) Would go down

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