Question: Monaco Company has a variable cost. At the production level of 10 units, the amount of the cost is $30. If the production level increases

Monaco Company has a variable cost. At the production level of 10 units, the amount of the cost is $30. If the production level increases to 12 units or by 20%,

A.

per-unit cost will increase by become 20%.

B.

total cost will increase by 20%

C.

total cost will become $32.

D.

total cost will increase by $20.

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