Monaco Company has a variable cost. At the production level of 100 units, the amount of the cost is $200. If the production level increases to 120 units:

Monaco Company has a variable cost. At the production level of 100 units, the amount of the cost is $200. If the production level increases to 120 units:




A. the total cost will increase by $20
B. the total cost will increase by 20%
C. the per-unit cost will increase by $20
D. the per-unit cost will increase by 20%



Answer: B


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