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Within the relevant range, if there is a change in volume then:__________A) Fixed and variable costs per unit will changeB) Fixed and variable costs per unit will remain the sameC) Fixed cost per unit will remain the same and variable cost per unit will change D) Fixed cost per unit will change and variable cost per unit will remain the sameE) None of the above

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Answer:

D) Fixed cost per unit will change and variable cost per unit will remain the same

Explanation:

Fixed cost of production is cost of production that does not vary with output. It remains constant. Fixed cost per unit = Fixed cost/ output. Fixed cost per unit varies with output.

Variable cost is the cost of production that changes with output. Variable cost per unit does not vary with output.

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