Question

If the volume of production is increased over the level planned, the cost per unit would be expected to:

Answer 1

Decrease for fixed costs and remain unchangedchange for variable cost.

Step-by-step explanation:

As the level of production gets increases, we will have the fixed cost per unit to fall, that is it would decrease. But The total fixed cost would remain the same.

At an increase in production the variable cost would be fixed or constant since it is constant amount per unit produced. The variable cost per unit would never change due to changes in production.