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As production increase within relevant range ,fixed cost per unit will? Why?
As production increase within relevant range ,variable cost per unit will? Why?
I am sorry, but your question does not make any sense.
“Fixed cost per unit will?” That is not a question 🙂
I do realise what you are really asking, and I will answer it.
However, I am guessing that you simply are asking me to provide the answer to a question that you have been asked. That is not what we are here for – we are here to help with things that you do not understand – you have not said what you do not understand!!!
Anyway……fixed costs in total should (by definition) stay fixed, however many units we produce.
The fixed costs per unit are the total fixed costs divided by the number of units produced.If you produce more units and total fixed costs stay the same (as they should) then you are dividing by a bigger number and so the fixed costs per unit will fall.
(The opposite will occur if the number of units produced is lower)
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