Geren Company Produces and Sells a Product That Has Variable

Multiple Choice

Geren Company produces and sells a product that has variable costs of $9 per unit and fixed costs of $200,000 per year. If production decreases from 50,000 to 40,000 units, the cost per unit will:

A) increase by $1
B) increase to $13
C) decrease to $14
D) decrease by $1