Question

If Smart Touch Learning increases its production of tabletâ computers, what will be the effects on the variable and fixed costs perâ tablet?

Answer 1

Answer:

D. variable costs per tablet is constant, fixed costs per tablet decrease

Explanation:

The variable cost is that cost that changes with the output level but would remains the same at per unit. While on the other hand the fixed cost is the cost that remains fixed whether there is an increase or decrease in the output level

Therefore as per the given situation, the variable cost per tablet would remain constant while the fixed cost per table would reduce

hence, the correct option is d.