A fast food restaurant manager plotted total costs on a graph where total costs are plotted on the vertical axis and activity level is plotted on the horizontal axis. If management makes a decision to more fully automate food preparation that will increase fixed costs, the impact on the graph for total costs will most likely be: A decrease in the vertical axis intercept A decrease in the slope of the total cost line O An increase in the vertical axis intercept An increase in the slope of the total cost line
A fast food restaurant manager plotted total costs on a graph where total costs are plotted on the vertical axis and activity level is plotted on the horizontal axis. If management makes a decision to more fully automate food preparation that will increase fixed costs, the impact on the graph for total costs will most likely be: A decrease in the vertical axis intercept A decrease in the slope of the total cost line O An increase in the vertical axis intercept An increase in the slope of the total cost line
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:A fast food restaurant manager plotted total costs on a graph where total costs are plotted on the vertical axis and activity level is plotted on the horizontal axis. If management makes a decision to more fully
automate food preparation that will increase fixed costs, the impact on the graph for total costs will most likely be:
A decrease in the vertical axis intercept
A decrease in the slope of the total cost line
An increase in the vertical axis intercept
An increase in the slope of the total cost line
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