Last year, Flash Company sold 15,000 units of its only product. If sales increased by 20% in the current year, how will total variable cost and total fixed cost be affected? Total Variable Cost Total Fixed Cost A) Remains constant Remains constant B) Increases Decreases C) Increases Remains constant D) Remains constant Decreases E) Remains constant Increases

C) Increases Remains constant

Explanation:

As we know that

The variable cost is the cost that varies when the level of output changes while the fixed cost is the cost that remains unchanged whether or not the level of output changes

So in the given case, the sales are increased by 20% that results in an increment of variable cost and the fixed cost would remain the same

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lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o