Mixed costs per unit decrease as volume increases because of the fixed cost component.

Name: Mixed costs per unit decrease as volume increases because of the fixed cost component.
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Question

Quizplus · Accepted Answer

Mixed costs consist of a fixed cost component and a variable cost component. As the volume increases and more units are produced, the fixed cost component is spread across a larger number of units, resulting in a decrease in mixed costs per unit.

Mixed Costs Per Unit Decrease as Volume Increases Because of the Fixed