Question: a) Describe how variable costs behave on a total basis vs. a per unit basis. b) Describe how fixed costs behave on a total basis

a) Describe how variable costs behave on a "total" basis vs. a "per unit" basis.

b) Describe how fixed costs behave on a "total" basis vs. a "per unit" basis.

c) If sales volume increases, would a company benefit more from having a pure variable cost structure or a pure fixed cost structure and WHY? HINT: Review the concepts for Operating Leverage prior to answering this question.

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