Fixed cost per unit is inversely proportional to the volume of units produced.

Name: Fixed cost per unit is inversely proportional to the volume of units produced.
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Question

Quizplus · Accepted Answer

This is because fixed costs remain constant regardless of the volume of units produced. As the volume of units produced increases, the fixed cost per unit decreases because the total fixed cost is spread out over a larger number of units. Therefore, the two variables are inversely proportional.

Fixed Cost Per Unit Is Inversely Proportional to the Volume