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Assuming your production volume is 5,000 units, if your fixed costs are $12 per unit at the 5,000-unit level, when you produce 7,500 units, you

Assuming your production volume is 5,000 units, if your fixed costs are $12 per unit at the 5,000-unit level, when you produce 7,500 units, you expect fixed costs per unit to:

Select one:

a. decrease to $8 per unit

b. remain at $16 per unit

c. increase to $20 per unit

d. none of the above.

(12)

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