Homework SourseFixed costs per unit decrease as the volume of activity incr
Fixed costs per unit decrease as the volume of activity increases.
| True |
Solution
Total fixed costs do not change with change in units.
Hence:
Hence fixed cost per unit decreases as volume of activity increases.True.
| 10000 units | 20000 units | |
| Total Fixed cost | $100,000 | $100,000 |
| Fixed cost/unit | (100,000/10000)=$10 | (100,000/20000)=$5 |
