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Question(s) / Instruction(s):

At a volume of 10,000 units, Company P incurs $30,000 in factory overhead costs, including $10,000 in fixed costs. Assuming that this activity is within the relevant range, if volume increases to 12,000 units, Company P would expect to incur total factory overhead costs of: 

a)            $34,000

b)            $32,000

c)            $30,000

d)            $36,000

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