A manufacturing company produces and sells product X. The number of units produced this year was 400 units with total costs 8000. Due to the increasing demand and the availability of capacity, the general manager decided to increase the number of units next year by 25% to produce 500 units. As a cost manager, do you agree with each of the following statements? Why? 1. Total costs will also increase by 25%. It will be 10,000 2. There is no change in the total costs as there is enough capacity 3. Total costs will decrease as the company will maximize capacity utilization. 4. The change in total costs will depend on the market and competitors reaction to this decision Answer 1 A- B T ili III op PA 20 QODF 17