As production decreases, one would expect the variable cost per unit to: a. b. c. d. e. 1. Decrease. Increase. Remain unchanged. Decrease and then increase. Do none of the above 2. The difference between fixed costs and variable costs is that: Variable costs per unit vary within the relevant range, while fixed costs per constant within the relevant range a. riable costs per unit are constant (remain unchanged) within the relevant range, while fixed costs per unit vary within the relevant range. b. Va ariable costs per unit change in direct proportion to changes in activity, while total fixed costs change in direct proportion to changes in activity. V c. V d. ariable costs per unit and fixed costs per unit remain constant within the relevant range. None of the above. e. A good example of a mixed cost is: a. b. c. utilities cost. d. depreciation. e. 3. Direct materials cost Indirect materials cost None of the above. In the month of lowest production volume, 500 units were produced and total utilities costs were $2,800. In the month of highest production volume, 850 units were produced at a total cost of $4,200. Using high and low method, what is the fixed cost? a. $400. b. $800. c. $2,675 d. $3987.50 e. 4. None of the above