Answer:
Instructions are listed below.
Explanation:
Giving the following information:
10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs are 50% of total unit costs.
Total cost= 10,000*60= 600,000
Variable cost= 60*0.5= 30
Total variable cost= 30*10,000= 300,000
Total fixed cost= 300,00
A. total variable cost will remain unchanged. False: The total variable cost varies according to production.
B. fixed costs will increase in total. False: fixed costs remain the same in relevant ranges.
C. variable cost per unit will increase. False: in unitary levels, variable cost remains constant. It only changes when computed the totality.
D. The total cost per unit will decrease. True: because of the fixed costs gets divided by a larger amount of units.
Total variable cost= 10,500*30= 315,000
fixed costs= 300,000
Total cost= 615,000
Unitary cost= 615,000/10,500= $58.57
