Which of the following describes the way fixed costs per unit behave?
A) They will remain the same as production levels change.
B) They will decrease as production decreases.
C) They will increase as production increases.
D) They will increase as production decreases.

Question

Quizplus · Accepted Answer

Fixed costs per unit increase as production decreases because the total fixed costs are spread over a smaller number of units, making the cost per unit higher.

Which of the Following Describes the Way Fixed Costs Per