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Question 11: The following table represents cost and volume information for Company B: Volume Cost per unit (in units) (in $)
Select the correct statement regarding fixed costs. 1. The fixed cost per unit does not change when volume decreases. 2. The
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Answer #1

Question 11:

Answer: c. Fixed cost

b.The fixed cost decreases when volume increases

Explanation:

Volume Cost per unit Total
500 $                 6 $    3,000
1000 $                 3 $    3,000
1500 $                 2 $    3,000

The overall fixed cost remains constant where as fixed cost per unit is inversely proportional to the volume

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