Suppose a company rents a building for $225,000 a year for the purpose of manufacturing between 100,000

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Suppose a company rents a building for $225,000 a year for the purpose of manufacturing between 100,000 and 180,000 units (the relevant range of activity). The rental cost per unit of production will __________ with increase in production level.
A. behave in a nonlinear fashion
B. increase
C. decrease
D. remain fixed
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Financial and Managerial Accounting the basis for business decisions

ISBN: 978-0078111044

16th edition

Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello

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