Audrey's Delicacies has been selling only plain and cream-filled cakes. Audrey believes she can increase her sales by adding a healthy-choice cupcake to the menu. She will incur some additional costs such as ingredients, cupcake accessories, and online advertising. Which of the following statements is false?

Answer choices

Audrey should add the cupcake only if the increased contribution margin exceeds the increase in fixed costs

Audrey should add the cupcake only if the increased contribution margin exceeds the increase in revenues.

All of the other options are false.

Audrey's total variable costs will probably increase

Audrey's fixed costs will probably increase. (I think it is this one)