Question

If the level of activity increases within the relevant range: A) variable costs per unit and...

If the level of activity increases within the relevant range:

A) variable costs per unit and total fixed costs stay the same.

B) fixed cost per unit and total variable cost also increase.

C) variable cost per unit and total cost also increase.

D) total cost will increase and fixed cost per unit will stay the same.

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Answer #1

answer is option a) variable costs per unit and total fixed costs stay the same.

variable cost per unit will not effected by ;level of activity.

TOTAL fixed cost will not effected by level of activity

Fixed cost per unit per unit will decrease when level of activity increases

TOTAL COST will increase when level of activity increases

please comment if you have any doubt

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