Say a? company’s total costs are? $2,500,000 when? 100,000 units are made. Of the total? cost, ?$400,000 is fixed. Assume all volumes referenced in the question fall within the relevant range.
1) What are the expected total costs when 120,000 units are ?made?
2) If volume? decreases, what happens to the variable cost per? unit?
3) If volume? increases, what happens to the total variable? costs?
4) If volume? decreases, what happens to the fixed cost per? unit?
5) If volume? increases, what happens to the total fixed? costs?