As sales volume increases in the relevant range,a fixed cost does not change ________,but the fixed cost ________ becomes progressively smaller.
A)per-unit; total
B)in total; per-unit
C)per-unit; per-unit
D)in total; per year

Question

Quizplus · Accepted Answer

Fixed costs remain constant in total regardless of sales volume, but the fixed cost per unit decreases as sales volume increases because the same total cost is spread over more units.

As Sales Volume Increases in the Relevant Range,a Fixed Cost