Please Its Just MCQ I need this 2 MCQ solution Thanks E not

Please Its Just MCQ. I need this 2 MCQ solution. Thanks

E. not enough Hiomai 10. Manufacturing costs for product X include direct materials $36 per unit, direct labor $2 per unit, variable overhead S2 per unit, and fixed overhead S8 per unit, for a total of S48 per unit. If production volume is increased by 10 units, how much will total manufacturing costs change in the short tern? (assume that the new production volume is in the relevant range A. not enough information-need to know the original volume B. increase by $380 C. increase by $400 D. increase by $460 E. increase by $480

Solution

A)Fixed cost remain constant within a relevant range and is incurred irrespective of level of output produced .so it is irrelevant cost .

Total manufacturing cost will change by variable cost = 10[36+2+2] = 400

correct option is \" C\"

B)Degree of operating leverage will increase with increase in fixed cost due to fall in net income .Also operating risk will also increase

correct option is \" A\"