How do fixed costs behave in total and on a per unit basisSo

How do fixed costs behave in total and on a per unit basis?

Solution

Fixed Costs are the costs that are fixed and does not vary with the variation in the quanity of units.

Fixed Costs acts differently on total and on per unit basis.

In total basis the burden of fixed costs falls upon all the units equally while in the basis of per unit the burden of fixed costs is attributed and allocated on the basis of fixed cost incurred on specific unit.