Solution-How will costs be affected

How will costs be affected

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Question 1: Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs were 50% of total unit costs. If 9,500 units are manufactured next month and cost behavior patterns remain unchanged, how will costs be affected?

a. Total costs per unit will increase.
b. Variable cost per unit will increase.
c. Total cost per unit will decrease.
d. Total variable costs will remain unchanged.

Reference no: EM132822445

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How will costs be affected

Reference no: EM132822445

Reference no: EM132822445

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