When 20,000 Units Are Produced, Fixed Costs Are $16 Per

question 127

Multiple Choice

When 20,000 units are produced, fixed costs are $16 per unit. Therefore, when 40,000 units are produced fixed costs will:

• A)increase to $32 per unit
• B)remain at $16 per unit
• C)decrease to $8 per unit
• D)total $640,000

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