Managerial Accounting

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Interpreting the Relevant Range

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TMX Corporation has the capacity to produce up to 100,000 units. Currently, it is producing and selling 85,000 units with fixed costs of \$200,000.

If TMX decides to increase output to 95,000, what happens to total fixed costs?

A

Increase

B

Decrease

C

Remain constant

D

Eliminated