Holding All Other Things Constant, an Increase in Fixed Production

Multiple Choice

Holding all other things constant, an increase in fixed production costs will affect:

A) the selling price under the absorption costing approach to cost-plus pricing.
B) the profit-maximizing price.
C) both the selling price under the absorption costing approach to cost-plus pricing and the profit-maximizing price.
D) neither the selling price under the absorption costing approach to cost-plus pricing nor the profit-maximizing price.