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Last Month,when 10,000 Units of a Product Were Manufactured,the Cost

Question 152

Multiple Choice

Last month,when 10,000 units of a product were manufactured,the cost per unit was $60.At this level of activity,variable costs are 50% of total unit costs.If 10,500 units are manufactured next month and cost behavior patterns remain unchanged the:


A) total variable cost will remain unchanged.
B) fixed costs will increase in total.
C) variable cost per unit will increase.
D) total cost per unit will decrease.

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