Question

Kramer Manufacturing produces blenders. Its total fixed costs are​ $30,000. Its variable costs are​ $55.00 per blender. As production of blenders increases​ (within the relevant​ range), fixed costs will

Answer 1

As the production of blenders increases, unitary fixed costs decreases.

Step-by-step explanation:

Its total fixed costs are​ $30,000. Its variable costs are​ $55.00 per blender.

On unitary bases, variable costs remain constant. On the contrary, fixed costs vary at a unitary level. Now, the same amount of costs is divided by a larger number of units.

As the production of blenders increases, unitary fixed costs decreases.