Bagel Time Produced and Sold 2,500 Bagels Last Month and Incurred

Multiple Choice

Bagel Time produced and sold 2,500 bagels last month and incurred fixed costs totaling $8,000.If production and sales are expected to decrease by 10% next month, which of the following statements is true?

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