Orlando Clinic has fixed costs of $800,000, a variable cost per visit of $60, and revenue per W visit of $100. For this clinic (within the relevant range), which of the following statements is most correct? O Higher volume leads to higher total costs. O Higher volume leads to higher average costs. O Higher volume leads to a higher contribution margin per unit. O Higher volume leads to lower contribution margin per unit.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter3: Cost Behavior And Cost Forecasting
Section: Chapter Questions
Problem 4MCQ: In the cost formula, the term 128,000,000 a. is the total variable cost. b. is the dependent...
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Orlando Clinic has fixed costs of $800,000, a variable cost per visit of $60, and revenue per
visit of $100. For this clinic (within the relevant range), which of the following statements is
most correct?
O Higher volume leads to higher total costs.
O Higher volume leads to higher average costs.
O Higher volume leads to a higher contribution margin per unit.
O Higher volume leads to lower contribution margin per unit.
Transcribed Image Text:Orlando Clinic has fixed costs of $800,000, a variable cost per visit of $60, and revenue per visit of $100. For this clinic (within the relevant range), which of the following statements is most correct? O Higher volume leads to higher total costs. O Higher volume leads to higher average costs. O Higher volume leads to a higher contribution margin per unit. O Higher volume leads to lower contribution margin per unit.
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