• Question: Christian Volhard works as a financial analyst for Tooele Company, which operates a large chain of fast-food restaurants. One of the key costs of the fast-food restaurants is the cost of food and packaging. Christian knows that food and packaging cost is a variable cost. Within the relevant range, what is the behavior of the per-unit cost of food and packaging?

  Christian Volhard works as a financial analyst for Tooele Company, which operates a large chain of fast$-$food restaurants. One of the key costs of the fast$-$food restaurants is the cost of food and packaging. Christian knows that food and packaging cost is a variable cost. Within the relevant range, what is the behavior of the per$-$unit cost of food and packaging?
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• Increases as activity level increases 
• Remains constant as activity level increases
• Decreases as activity level increases
• Decreases as activity level decreases

Answer rating: 100% (QA)

Based on the given information that the cost of food and packaging is a variable cost the behavior ... View the full answer