QUESTION
As production levels increase, Choose onevariable costs per unit decrease.fixed costs per unit increase.fixed costs per unit stay the same and variable costs per unit increase.fixed costs per unit decrease and variable costs per unit stay the same.
fixed costs per unit decrease and variable costs per unit stay the same. Because: the total fixed costs are the same no matter how much you make. Thus, the more units produced, the less fixed costs per unit. Variable costs are the same per unit no matter how many.
Its the total variable costs that increase with increase production. Example: Fixed costs: the cost of the factory building. Variable: The cost of material used in production.
ANSWER:
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