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Question 1: During March, 5,000 units were manufactured at a unit cost of $5. At this level of activity, variable costs are 40 percent of total unit costs. The following month, the company planned to manufacture 4,500 units. If cost behavior patterns remain unchanged in February,
Select one:
Option a. total fixed costs will decrease
Option b. total variable cost will remain unchanged
Option c. total cost per unit will increase
Option d. variable cost per unit will decrease
Option e. Some other effect not listed here
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