Consider the following data: fixed costs = $10 million, variable cost per unit = $400, and revenue

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Consider the following data: fixed costs = $10 million, variable cost per unit = $400, and revenue per unit = $1,200. For this organization, which of the following statements is most correct?

Higher volume leads to higher total costs.

Higher volume leads to higher average costs.

Higher volume leads to a higher variable cost per unit.

Higher volume leads to a higher contribution margin per unit.

None of the above is correct.

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Auditing and Assurance Services

ISBN: 978-0077862343

6th edition

Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws

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Posted Date: Feb 14, 2022 07:14 AM

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Consider the following data: fixed costs = $10 million, variable cost per unit = $400, and revenue

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