If a production facility increases its production by 1,500 units, its:

Name: If a production facility increases its production by 1,500 units, its:
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Question

Quizplus · Accepted Answer

Fixed costs do not change with changes in production volume, so the fixed cost per unit will decrease as production increases. Variable costs, on the other hand, are directly tied to production volume and may increase or decrease depending on the specific cost. Total fixed costs will remain the same regardless of changes in production.

If a Production Facility Increases Its Production by 1,500 Units