When 20,000 units are produced,variable costs are $8 per unit.Therefore,when 10,000 units are produced ________.
A) variable costs will remain at $8 per unit
B) variable costs will total $60,000
C) variable unit costs will increase to $12 per unit
D) variable unit costs will decrease to $3 per unit

Question

Quizplus · Accepted Answer

The question provides no information to suggest that variable costs will change based on the level of production, therefore the variable costs per unit will remain at $8 per unit regardless of the level of production.

When 20,000 Units Are Produced,variable Costs Are $8 Per Unit