Higher volume leads to higher average costs

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Consider the following data: fixed costs = $10 million, variable cost per unit = $400, and revenue per unit = $1,200. For this organization, which of the following statements is most correct?

Higher volume leads to higher total costs.

Higher volume leads to higher average costs.

Higher volume leads to a higher variable cost per unit.

Higher volume leads to a higher contribution margin per unit.

None of the above is correct.

Reference no: EM13810819

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