Variable Costs Per Unit Over a Given Range Are

question 45

Multiple Choice

Variable costs per unit over a given range are:

• A) Inversely related to the quantity of units sold.
• B) Graphically represented by a linear function with a positive slope.
• C) Not subjected to sensitivity analysis as long as the quantity sold is held to a reasonable range.
• D) Equivalent to fixed costs per unit at a zero production level.
• E) Equivalent to marginal net income provided sales revenue is positive over the given range.

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