Answer:
If the company wants to increase the capacity of the plant at a cost of $ 1,000,000 ($ 500,000 x $ 2) the first thing to see is what are the revenues that will allocate the costs, if these are durable (by means of a contract)
It would also have to evaluate what the variable costs are, if these are added to the fixed costs, there should be a profit margin, so to know it first you should know the level of income.
