Within the relevant range,which of the following statements is TRUE with respect to fixed costs per unit?
A)They will increase as production increases.
B)They will decrease as production decreases.
C)They will increase as production decreases.
D)They will remain the same as production levels change.

Question

Quizplus · Accepted Answer

Fixed costs per unit increase as production decreases because the total fixed costs are spread over fewer units.

Within the Relevant Range,which of the Following Statements Is TRUE