1. The fixed cost per unit is $10 when a company produces 10,000 units of product. What are the fixed costs per unit when 8,000 units are produced?

$8.00 or $10.00.

2. A true statement about cost behavior is that:

Fixed costs are constant on per unit basis and change in total as activity changes.

Variable costs are constant on per unit basis, and are constant in total as activity change.

Variable cost change on per unit basis, and change in total as activity changes.

Variable cost are constant on per unit basis, and change in total as activity changes.

Fixed cost are constant per unit basis and constant in total as activity changes.

3. Which of the following is an example of a fixed cost?

Paper used in the manufacturing of textbooks.

Surgical supplies used in a hospital's operating room.

Property tax paid by a firm to a large city.

The wages of part-time workers who are paid $8.00 per hour

Gasoline consumed by a salespersons car.