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Gloom Manufacturing produces designer handbags and has the capacity to produce 50,000 handbags...

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Accounting

Gloom Manufacturing produces designer handbags and has the capacity to produce 50,000
handbags per year. Currently, Gloom produces 40,000 handbags and is thinking about increasing
production to 45,000 units next year. What is the most likely behavior of total manufacturing costs
and unit manufacturing costs given this change?
Total manufacturing costs will increase and unit manufacturing costs will stay the same
Total manufacturing costs will stay the same and unit manufacturing costs will stay the same
Total manufacturing costs will increase and unit manufacturing costs will decrease
Total manufacturing costs will increase and unit manufacturing costs will also increase
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