When 20,000 Units Are Produced,fixed Costs Are $16 Per Unit

question 40

Multiple Choice

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

• A) increase to $20 per unit
• B) remain at $16 per unit
• C) decrease to $10 per unit
• D) total $160,000

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