Xi'an Manufacturing Produces a Unique Terracotta Warrior,and Has the Capacity

Multiple Choice

Xi'an Manufacturing produces a unique terracotta warrior,and has the capacity to produce 50 000 warriors annually.Currently Xi'an produces 40 000 warriors and is thinking about increasing production to 45 000 warriors next year.What is the most likely behaviour of total manufacturing costs and unit manufacturing costs given this change?

A) Total manufacturing costs will increase and unit manufacturing costs will decrease.
B) Total manufacturing costs will stay the same and unit manufacturing costs will stay the same.
C) Total manufacturing costs will stay the same and unit manufacturing costs will decrease.
D) Total manufacturing costs will increase and unit manufacturing costs will stay the same.