Question: 1. A decrease in the level of activity will have the following effects on unit costs for variable and fixed costs: Unit Variable Cost Unit

1. A decrease in the level of activity will have the following effects on unit costs for variable and fixed costs: Unit Variable Cost Unit Fixed Cost 1. Increases Decreases 2. Remains constant Increases 3. Decreases Remains constant 4. Remains constant Decreases A. 1 only B. 2 only C. 2 and 3 D. 1 and 2

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