[cindy999]

B

[cindy999]

Assume the cost and calculate according to the increase or decrease of percentage
Activity level : 100
Variable per unit : $2
Fixed : $500
Total : $700

Now do another set which activity level increase by 20%
Activity level : 120
Variable per unit : $2
Fixed : $500
Total : $740

Then find the difference in total cost in %

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