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In January, 5,000 units were manufactured at a unit cost of $5. At this level of activity, variable costs are 40 percent of total unit

In January, 5,000 units were manufactured at a unit cost of $5. At this level of activity, variable costs are 40 percent of total unit costs. The following month, the company planned to manufacture 5,500 units. If cost behavior patterns remain unchanged in February,

A. fixed cost per unit will decrease

B. total variable cost will remain unchanged

C. total cost per unit will increase

D. None of these answers are correct

E. variable cost per unit will decrease

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