Which of the following describes the behavior of the fixed cost per unit? a. remains constant with changes in production b. decreases with decreasing production c. decreases with increasing production d. increases with increasing production
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Examples include rent, insurance, and salaries of permanent staff. Fixed cost per unit is the fixed cost divided by the number of units produced. a. remains constant with changes in production: This is not true because as production increases, the fixed cost per Show more…
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