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A management team estimates their variable cost per unit to be $ 4 . 5 0 and their total fixed costs to be $ 5

A management team estimates their variable cost per unit to be $4.50 and their total
fixed costs to be $500,000. If the company wants to reduce costs as volume increases
from 10,000 units to 15,000 units, what would be their best option?
Find a way to reduce fixed costs because as volume increases the fixed costs per
unit increases.
Find a way to increase fixed costs because as volume increases the cost per unit
will decrease.
Find a way to reduce variable costs per unit because as volume increases the
variable cost per unit will increase.
Find a way to reduce variable costs per unit because variable costs increase
proportionally when volume increases.
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