Question 1
Which of the following is true if the production volume decreases?
◦ fixed cost per unit increases
◦ average cost per unit decreases
◦ variable cost per unit increases
◦ variable cost per unit decreases
Question 2
Which of the following is true if the volume of sales increases (within a relevant range)?
◦ total fixed cost increases
◦ total variable cost decreases
◦ total variable cost increases
◦ total fixed cost decreases