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Smythe Manufacturing Produces Food Processors

Question 135

Multiple Choice

Smythe Manufacturing produces food processors.Their total fixed costs are $50,000.Its variable costs are $75.00 per food processor.As production of food processors increases,fixed costs will:


A) stay the same per unit.
B) decrease as sales increase.
C) increase as sales decrease.
D) decrease per unit as sales increase.

Correct Answer:

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