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What machine cost can be reasonably modeled

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Question 1: In 2020, Ingram Corp. is a small start-up manufacturer. It has one machine capable of producing 100,000 units per year. Ingram currently produces just 1000 to 2000 units per month. The machine cost is a step cost, but it can be reasonably modeled as which type of cost?

Select one:

a. variable

b. fixed

Question 2: In 2028, Ingram has massively grown and now produces 5 million to 10 million units per month. The machines are essentially the same as in 2020. Machine cost can be reasonably modeled as what in 2028?

Select one:

a. fixed

b. variable

Reference no: EM132524321

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