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An Increase in the Level of Activity Will Have the Following

Question 42

Short Answer

An increase in the level of activity will have the following effects on unit costs for variable and fixed costs:  Unit Variable Cost  Unit Fixed Cost \begin{array}{cc} \text { Unit Variable Cost } & \text { Unit Fixed Cost } \\\end{array}
A)  Increases  Decreases \begin{array}{cc}\text { Increases } &&&&& \text { Decreases } \\\end{array}
B)  Remains constant  Remains constant \begin{array}{cc}\text { Remains constant }&\text { Remains constant }\end{array}
C)  Decreases  Remains constant \begin{array}{cc}\text { Decreases } &&&&\text { Remains constant }\end{array}
D)  Remains constant  Decreases \begin{array}{cc}\text { Remains constant } & &\text { Decreases } \\\end{array}

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