Pip's Puppy Treats estimates that variable costs per biscuit are $$1\mathrm{.}50$ and the total fixed costs are $$300,000.$ What costs should be included in deciding whether to increase volume from $100,000$ units to $150,000$ units?

Only the variable costs because the fixed costs will remain the same as the volume increases.

Neither variable or fixed costs will impact the decision to increase volume.

Only the fixed costs because the variable cost per unit will remain the same as volume increases.

Both the variable and fixed costs need to be included in the decision to increase volume