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Kramer Manufacturing Produces Blenders

Question 291

Multiple Choice

Kramer Manufacturing produces blenders. Its total fixed costs are $30,000. Its variable costs are $55.00 per blender. As production of blenders increases (within the relevant range) , fixed costs will


A) stay the same per unit.
B) decrease as production increases.
C) decrease per unit as production increases.
D) increase as production decreases.

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