$3$

Multiple Choice

$2$ points

When $25,000$ units are produced, fixed costs are $$21\mathrm{.}00$ per unit. Therefore, when $20,000$ units are produced, fixed costs will:

total $$420,000$

remain at $$21\mathrm{.}00$ per unit

increase to $$26\mathrm{.}25$ per unit

decrease to $$16\mathrm{.}80$ per unit