Question

Craft, Inc. normally produces between 120,000 and 150,000 units each year. Producing more than 150,000 units alters the company's cost structure. For example, faced costs increase because more space must be rented, and additional supervisors must be hired. The production range between 1120,000 and 150,000 is called the: a) differential range. b) median range c) relevant range d) leverage range

Answer 1

The production range between 1120,000 and 150,000 is called Relevant range

correct option is c) relevant range

Step-by-step explanation:

given data

normally produces = 120,000 to 150,000 units

to find out

The production range between 1120,000 and 150,000 is called

solution

The production range between 1120,000 and 150,000 is called Relevant range because there are 2 point

• if Craft, Inc. need to reduce fixed expenses then production volume is reduce less than 120000 unit

• if Craft, Inc. need to increase fixed expenses than production volume is increases more than 150000 unit

and if expected fixed expenses will not change than the production volume is 120000 units to 150000 units

so that production range between 1120,000 and 150,000 is called Relevant range

correct option is c) relevant range