Problem

In the following profit–volume chart, EF and GH represent the profit–volume graphs of a si...

In the following profit–volume chart, EF and GH represent the profit–volume graphs of a single-product company for, 2012 and 2013, respectively. (Adapted from: Uniform CPA Examination, American Institute of Certified Public Accountants.)

If the 2012 and 2013 unit sales prices are identical, how did the total fixed costs and unit variable costs of 2013 change compared with their values in 2012? Choose one:

2012 Total Fixed Costs

2013 Unit Variable Costs

(a) Decreased

Increased

(b) Increased

Decreased

(c) Increased

Increased

(d) Increased

Decreased

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