Question: Expense # 1 is a fixed cost; expense # 2 is a variable cost. During the current year, the activity level has increased, but is

Expense #1 is a fixed cost; expense #2 is a variable cost. During the current year, the activity level has increased, but is still within the relevant range. In terms of cost per unit of activity, we would expect that:
expense #1 will be unchanged.
expense #2 will decrease.
expense #1 will decrease.
expense #2 will increase.
Expense # 1 is a fixed cost; expense # 2 is a

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