Answer-:
15). Property taxes, salary and straight line depreciation are fixed cost but direct material cost is directly linked with production.
So, direct material cost is variable cost.
16). When production decreases, fixed cost per unit increases.
For example,
Units produced = 100 units
Fixed cost= $1000
Fixed cost per unit = $10
Now if production decreases to 50 units,
Then fixed cost per unit = $20
So, fixed cost per unit increases as production decreases.
Thankyou.......
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