Question: When the activity level declines within the relevant range, what should happen with respect to the fixed and variable costs per unit? Question 1 2
When the activity level declines within the relevant range, what should happen with respect to the fixed and variable costs per unit?
Question options:
A
The variable cost per unit increases and the fixed cost per unit doesn't change.
B
Both the fixed and variable costs per unit increase.
C
The fixed cost per unit increases and the variable cost per unit doesn't change.
D
Neither the fixed nor variable costs per unit change.
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