Question: 1. As production volume increases, describe how variable costs behave: (a) on a total basis and (b) on a per unit basis. Explain. (2pts each)

1. As production volume increases, describe how variable costs "behave": (a) on a total basis and (b) on a per unit basis. Explain. (2pts each) 2. As production volume increases, describe how fixed costs "behave"": (a) on a total basis and (b) on a per unit basis. Explain. (2pts each) 3. Bobby's Bicycle Barn manufactures bicycles used in major competitions. Identify each of the following costs as variable (V) or fixed (F), relative to the number bicycles produced. (1pt each) A. Total wages of bicycle assemblers B. Rent on the assembly plant C. Depreciation on the assembly equipment (using straight-line method) D. Total parts used in the bicycles (wheels, handlebars, etc.) E. Annual business license to operate the company F. Salary of production supervisor G. Oil and other supplies used to maintain the assembly equipment

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