Expected level of production and sales

Reference no: EM13124784

Cool-It Company manufactures and sells commercial air conditioners. Because of current trends, it expects to increase sales by 15 percent next year. If this expected level of production and sales occurs and plant expansion is not needed, how should this increase affect next year's total amounts for the following costs.

A) Variable costs will increase. Fixed costs will increase. Mixed costs will increase.

B) Variable costs will increase. Fixed costs will NOT change. Mixed costs will increase.

C) Variable costs will decease. Fixed costs will increase. Mixed costs will increase.

D) Variable costs will decrease. Fixed costs will increase. Mixed costs will increase

Reference no: EM13124784

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