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 morefully automate food preparation that will increase variable costs, the impact on the graph for total costs will most likely be:A decrease in the slope of the total cost lineAn increase in the slope of the total cost lineA decrease in the vertical axis interceptAn increase in the vertical axis intercept

Total Costs - The total costs incurred by a business to create a specific volume of items. It is the…

ood restaurant manager plotted total cos tomate food preparation that will im A decrease in the slope of the total cost An increase in the slope of the total cost A decrease in the vertical axis intercept

ood restaurant manager plotted total cos tomate food preparation that will im A decrease in the slope of the total cost An increase in the slope of the total cost A decrease in the vertical axis intercept

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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 variable costs, the impact on the graph for total costs will most likely be:
A decrease in the slope of the total cost line
An increase in the slope of the total cost line
A decrease in the vertical axis intercept
An increase in the vertical axis intercept

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