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Jonas Manufacturing produces a uniquewidget, and has the capacity to produce100,000 widgets annually. Currently Jonas...

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Accounting

Jonas Manufacturing produces a uniquewidget, and has the capacity to produce100,000 widgets annually. Currently Jonas produces80,000 widgets and is thinking about increasing production to90,000 widgets next year. What is the most likely behavior of total manufacturing costs and unit manufacturing costs given thischange?

A.

Total manufacturing costs will increase and unit manufacturing costs will decrease.

B.

Total manufacturing costs will increase and unit manufacturing costs will also increase.

C.

Total manufacturing costs will stay the same and unit manufacturing costs will stay the same.

D.

Total manufacturing costs will increase and unit manufacturing costs will stay the same.

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