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2. As volume increases,
a. Total fixed costs remain constant and per unit fixed cost increase.
b. Total fixed costs remain constant and per unit fixed cost decrease.
c. Total fixed costs remain constant and per unit fixed costs remain constant.
d. Total fixed costs increase and per unit fixed costs increase.
3. Within the relevant range, the amount of variable cost per unit.
a. Differs at each production level.
b. Increases as production increases.
c. Decreases as production increases.
d. Remains constant at each production level.
8. In describing the cost formula equation, y=a+bx, which of the following statements is correct?
a. y is the independent variable.
b. a is the variable rate.
c. a and b is valid for all levels of activity.
d. In the high low method, b equals the change in cost divided by the change in activity.