tayts inc manufactures ladders. currently the company manufactures and sells 100000 ladders per year. the variable cost
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Question:
tayts inc manufactures ladders. currently the company manufactures and sells 100000 ladders per year. the variable cost per ladder is $8, and the total fixed costs are $200000. tayts inc has the capacity to invrease sales by 20000 ladders per year. if total production remains within the relevant range, what can tayt expect to happen to its variable and fixed costs?
multiple choice
a. variable cost per unit will increase
b. variable costs will remain at $8 per unit
c. fixed costs will decrease to 160000
d. fixed costs will increase to 240000
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