An Increase in the Level of Activity Will Have the Following

question 134

Short Answer

An increase in the level of activity will have the following effects on unit costs for variable and fixed costs: $\begin{array}{ll}&\text { Unit Variable Cost }&\text { Unit Fixed Cost }\\a.&\text { Increases } & \text { Decreases } \\b.&\text { Remains constant } & \text { Remains constant } \\c.&\text { Decreases } & \text { Remains constant } \\d.&\text { Remains constant } & \text { Decreases }\end{array}$