What will result from an increase in the activity level within the relevant range?
A) An increase in fixed cost per unit.
B) A proportionate increase in total fixed costs.
C) An unchanged fixed cost per unit.
D) A decrease in fixed cost per unit.

Question

Quizplus · Accepted Answer

Fixed costs per unit decrease as activity level increases within the relevant range because the total fixed costs are spread over more units.

What Will Result from an Increase in the Activity Level