When production levels are expected to decline within a relevant range, what effects would be anticipated with respect to each of the following? $$\begin{array} { | l | l | l | }
\hline & \text { Fixed Costs } & \text { Variable Costs } \
\hline & \text { per Unit } & { \text { per Unit } } \
\hline \text { A) } & \text { increase } & \text { no change } \
\hline \text { B) } & \text { increase } & \text { increase } \
\hline \text { C) } & \text { no change } & \text { no change } \
\hline \text { D) } & \text { no change } & \text { increase } \
\hline
\end{array}$$
A)Option A
B)Option B
C)Option C
D)Option D

Question

When production levels are expected to decline within a relevant range, what effects would be anticipated with respect to each of the following? $$\begin{array} { | l | l | l | } 
\hline & \text { Fixed Costs } & \text { Variable Costs } \
\hline & \text { per Unit } &  { \text { per Unit } } \
\hline \text { A) } & \text { increase } & \text { no change } \
\hline \text { B) } & \text { increase } & \text { increase } \
\hline \text { C) } & \text { no change } & \text { no change } \
\hline \text { D) } & \text { no change } & \text { increase } \
\hline
\end{array}$$
A)Option A
B)Option B
C)Option C
D)Option D

Quizplus · Accepted Answer

Fixed costs per unit increase because the total fixed costs are spread over fewer units, while variable costs per unit remain unchanged as they vary directly with production volume.

When Production Levels Are Expected to Decline Within a Relevant