As sales volume decreases in the relevant range,fixed costs per unit ________,but total fixed costs ________.
A)increase; do not change
B)decrease: do not change
C)do not change; increase
D)do not change; decrease

Question

Quizplus · Accepted Answer

Fixed costs are expenses that do not change with changes in sales volume. As sales volume decreases, the same fixed costs are spread over fewer units, resulting in an increase in fixed costs per unit. However, total fixed costs remain the same as they do not change with changes in sales volume.

As Sales Volume Decreases in the Relevant Range,fixed Costs Per