Montgomery Company Has a Variable Selling Cost A)1
B)2
C)3
D)4
E)5

Multiple Choice

Montgomery Company has a variable selling cost. If sales volume increases, how will the total variable cost and the variable cost per unit behave? $\begin{array} { | l | l | l | } \hline & \text { Total Variable Cost } & \underline { \text { Variable Cost Per Unit } } \\\hline 1 & \text { Increase } & \text { Increase } \\\hline 2 & \text { Increase } & \text { Remain constant } \\\hline 3 & \text { Increase } & \text { Decrease } \\\hline 4 & \text { Remain constant } & \text { Decrease } \\\hline 5 & \text { Decrease } & \text { Increase } \\\hline\end{array}$

A) 1
B) 2
C) 3
D) 4
E) 5