Question

If Smart Touch Learning increases its production of tablet computers, what will be the effects on the variable and fixed costs per tablet? variable costs per tablet decrease, fixed costs per tablet increase variable costs per tablet increase, fixed costs per tablet is constant variable costs per tablet increase, fixed costs per tablet decrease variable costs per tablet is constant, fixed costs per tablet decrease

Answer 1

fixed costs per tablet decrease variable costs per tablet is constant

Step-by-step explanation:

Giving the following information:

If Smart Touch Learning increases its production of tablet computers, what will be the effects on the variable and fixed costs per tablet?

In a variation in production, total fixed costs remain unaltered but unitary fixed costs change because it is divided by different units (in a relevant range). With variable costs, it is the opposite. The unitary remains unchanged while the total varies accordingly with production.