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1000 units fixed cost are 10000
2000 units fixed cost are 10000
Most of jewel company’s fixed cost are setup costWhich of the following statements(s) regarding Jewel Co’s fixed costs is/are correct?
(1) Jewel Co’s fixed costs are stepped.
(2) Increasing batch sizes from 1,000 units to 2,000 units would dramatically reduce setup costs and increase profits.
A (1) only
B (2) only
C) Both (1) and (2)
Neither (1) nor (2)
Answer is C.
I did second wrong as setup cost per unit will decrease why it is saying setup cost will decrease?
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