A management team estimates their variable cost per unit to be $$4\mathrm{.}50$ and their total

fixed costs to be $$500,000.$ If the company wants to reduce costs as volume increases

from $10,000$ units to $15,000$ units, what would be their best option?

Find a way to reduce fixed costs because as volume increases the fixed costs per

unit increases.

Find a way to increase fixed costs because as volume increases the cost per unit

will decrease.

Find a way to reduce variable costs per unit because as volume increases the

variable cost per unit will increase.

Find a way to reduce variable costs per unit because variable costs increase

proportionally when volume increases.