Variable costs per unit over a given range are:
A) Inversely related to the quantity of units sold.
B) Graphically represented by a linear function with a positive slope.
C) Not subjected to sensitivity analysis as long as the quantity sold is held to a reasonable range.
D) Equivalent to ﬁxed costs per unit at a zero production level.
E) Equivalent to marginal net income provided sales revenue is positive over the given range.

Question

Quizplus · Accepted Answer

Variable costs per unit over a given range are typically represented by a linear function with a positive slope. As the quantity of units sold increases, the variable cost per unit also increases, resulting in a diagonal line when graphed.

Variable Costs Per Unit Over a Given Range Are