A) If the company sets the markup as 25% of the total cost per unit, how does the price change when the company produces and sells 40,000 units compared to 20,000 units?

B) Based on the visualization, someone argues that since the fixed manufacturing cost per unit decreases with the number of units, it does not make sense to include it when setting the price as the price will go down as the production level increases. Is this statement true?

Total variable cost (per unit) Total fixed costs (per unit) 5 80 4 Total variable cost (per unit) Total fixed costs (per unit) L. 20 1 0 0 10000 40000 10000 40000 20000 30000 Level in Units 20000 30000 Level in Units