When the level of activity increases, total variable costs 41 decrease remain the same increase decrease in a step-wise manner Question 2 1 pts The term "a" in the linear cost equation (total cost formula) y abx represents the variable cost per unit of activity fixed cost per unit of activity total fixed costs total variable cost Question 3 1 pts A weakness of the high-low method is that a significant amount of management expertise is necessary to break out the variable and fixed costs it utilizes only two data points the calculations are so complex that a computer is usually necessary in order to get accurate results