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Lee Company produces and sells a product that has variable costs of $10 per unit and fixed costs of $100,000 per year. If production increases

Lee Company produces and sells a product that has variable costs of $10 per unit and fixed costs of $100,000 per year. If production increases from 10,000 units to 20,000 units, the TOTAL cost will ________.

A) increase by $20,000

B) decrease by $10 per unit

C) decrease by $5 per unit

D) stay the same

LO: 6-7

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