Miles Corporation Has a Fixed Utilities Cost A)1
B)2

Multiple Choice

Miles Corporation has a fixed utilities cost. If sales volume increases, how will the total fixed cost and the fixed cost per unit behave? $\begin{array} { | r | l | l | } \hline & \text { Total Fixed Cost } & \text { Fixed Cost Per Unit } \\\hline \mathbf { 1 } & \text { Increase } & \text { Increase } \\\hline \mathbf { 2 } & \text { Increase } & \text { Remain Constant } \\\hline \mathbf { 3 } & \text { Increase } & \text { Decrease } \\\hline \mathbf { 4 } & \text { Remain Constant } & \text { Decrease } \\\hline \mathbf { 5 } & \text { Decrease } & \text { Increase } \\\hline\end{array}$

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