Wesson Company sold 10,000 units of its only product in the first half of the year. If sales increase by 12% in the second half of the year, which cost will increase?

Question

Ralph Mccarthy

Mathematics

7 April, 02:35

Wesson Company sold 10,000 units of its only product in the first half of the year. If sales increase by 12% in the second half of the year, which cost will increase?

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Answers (1)

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Tessa Malone · Answer 1

Direct materials

Step-by-step explanation:

In this case we must bear in mind that as more products are sold, more material is needed to manufacture those additional final products

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Therefore, in this case the cost would be related mainly to the materials, mainly the direct materials, since they are essential in the production of the product.