Variable cost per unit A. can be estimated by performing break-even calculations increases on a per unit basis when the level of activity increases. is represented by the slope of the total cost line. All of these answer choices are correct. When the level of activity increases, the fixed cost per unit A. decreases. remains the same. increases fluctuates, depending on the amount of the increase in activity. Within the relevant range, variable costs per unit change when the activity level changes. B. are the same in total at different activity levels. C. are the same amount per unit at any activity level None of these answer choices are correct. A company has a cost that is $7.00 per unit at a volume of 10,000 units and $5.00 per unit at a volume of 14,000 units. What type of cost is this? Fixed costs Variable costs Mixed costs Incremental costs 5. Walsh Company graphed its units produced and total production costs for the past eight months. What is this called? Incremental analysis Regression analysis Contribution margin Scattergraph The high-low method calculates the total fixed cost as the A. difference between total variable costs and total costs at a particular activity level. difference between the unit variable cost and the unit total cost. C. change in cost divided by the change in activity level for two points. D. change in activity level divided by the change in cost for two points 7. A significant weakness of the high-low method is that a significant amount of management expertise is necessary to break out the variable and fixed costs. B. the two data points that are used may not be representative of the general relationship between cost and activity C. the calculations are so complex that a computer is usually necessary in order to get accurate results monthly data must be collected for at least three years before the method can be used