B Reported Gross Margn ceross C Reported expense total of al

B) Reported Gross Margn c.e.ross C) Reported expense (total of all product and period costs) on the inc stmt is too high. D) None of the above would occur as a result of this error. 1 6. DeWalt &Letourneau;, Inc. produces quality bagels for demanding students. Variable cost of production is currently S3.91 per dozen and fixed production costs are $33,000 per year. The company plans to double production, but this volume increase will still be within the company\'s \"Relevant Range\" of production capabilities. How will this change impact the cost of production? A) The total overall cost of production will stay the same within the relevant range. B) The total unit cost of production will go down within the relevant range. C) The total overall cost of production will go down within the relevant range. D) The total unit cost of production will go up within the relevant range.

Solution

Answer: B) The total unit cost of production will go down within the relevant range.

Fixed cost is constant within the relevant range hence double the production within the range will not give any effect in fixed cost.Only total variable cost will double due to double production hence the total cost of production of overall unit will go up but it will reduce the cost of production per unit due to non increase in fixed cost.