Answer is Total Cost will increase and fixed cost per unit will decrease.
Other Solutions -
Option 1. Wrong because as the level of activity increase the variable cost per unit will remain same and total cost will increase.
Option 2. Wrong because as the level of activity increase the variable cost per unit will remain same and fixed cost will decrease.
Option 3. Wrong because as the level of activity increase fixed cost per unit will decrease and variable cost will increase.
Option 4. Right because as the level of activity increase sales will increases fixed cost per unit will decrease because volume will increase but total fixed cost will remain same and totalcost will remain increases due to increase in volume of sales
If the level of activity increases within the relevant range: O variable cost 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.
Within the relevant range, as the number of units produced increases: the variable cost per unit will increase O the fixed cost per unit will decrease O total variable costs will remain the same O total fixed costs will decrease
3 As the volume of activity increases within the relevant range, the variable cost per unit a. decreases. b. decreases at first, then increases. c. remains the same. d. increases.
Determine the relevant range of activity for this product. Calculate the variable costs per unit within the relevant range. Indicate the fixed cost within the relevant range. Determine the relevant range of activity for this product The relevant range of activity for this product units LINK TO TEXT Calculate the variable costs per unit within the relevant range. (Round answer to 2 decimal places, e.g. 1.25.) Variable costs per unit per unit LINK TO TEXT Indicate the fixed cost within...
When the level of activity increases within the relevant range, how does each of the following change? A. Variable Cost per Unit - Increases, Fixed Cost per Unit - Increases B. Variable Cost per Unit - Decreases, Fixed Cost per Unit - Remains the same C. Variable Cost per Unit - Remains the same, Fixed Cost per Unit - Decreases D. Variable Cost per Unit - Remains the same, Fixed Cost per Unit - Increases The new cost analyst in your...
Within the relevant range, a change in activity results in a change in variable cost per unit and total fixed cost. True or False
As the level of activity increases, how will a variable cost in total and per unit behave? A) In Total Increase Increase Increase Decrease Decrease Per Unit Decrease Increase No effect Increase No effect Multiple Choice Choice A Choice B
Question 1 Fixed cost per unit continuously declines as production increases (within the relevant range). This is called economies of scale. True False Question 2 The coefficient of determination or R squared, in regression analysis, should be less than 0.75 to indicate a strong cost equation. True False Question 3 ABC Co. has fixed costs of $85,000. ABC wants to achieve an after-tax profit of $10,000. The selling price per unit is $100, and the variable cost per unit is...
When a flexible budget is used, a decrease in the output level within the relevant range would: a. Not change fixed costs per unit. b. Decrease total fixed costs. c. Decrease total costs. d. Increase variable costs per unit.
Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant range, which of the following statements is/are correct? I. As the cost driver level increases, total fixed cost remains unchanged. II. As the cost driver level increases, unit fixed cost increases III. As the cost driver level decreases, unit variable cost decreases. 1. I only is correct. 2. I, II, and III are correct. 3. II and...