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Bizhelp, Accountant
Category: Business and Finance Homework
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Experience:  BA degree and Certified Public Accountant
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Last month, when 10,000 units of a product were manufactured,

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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 cost per unit will decrease.
B. total variable cost will remain unchanged.
C. variable cost per unit will increase.
D. fixed costs will increase in total.
Submitted: 5 years ago.
Category: Business and Finance Homework
Expert:  Bizhelp replied 5 years ago.

Thanks for the question.

The answer is A. total cost per unit will decrease.

Hope this helps!

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