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Krista's Bakery Produced and Sold 2,000 Pies Last Month and Had

Question 96

Multiple Choice

Krista's Bakery produced and sold 2,000 pies last month and had fixed costs of $6,000.If production and sales are expected to increase by 10% next month,which of the following statements is true?


A) Fixed cost per unit will decrease.
B) Fixed cost per unit will increase.
C) Total fixed costs will decrease.
D) Total fixed costs will increase.

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