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Fixed cost per unit _______.
Answer & Solution
Correct Answer:
Option
C
Fixed cost per unit changes according to volume of production. A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.
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Suppose,
In case1 fixed cost is 20000 , variable cost is 30000 and output is 6000. So fixed cost per unit will be 20000/6000= 3.33
If the output increased to 12000 then fixed cost per unit will be 20000/12000= 1.66.
HENCE, THE FIXED PER UNIT VARY BUT FIXED COST IN AMOUNT WILL BE SAME.