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Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs are 50%

Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable costs are 50% of total unit costs. If 10,500 units are manufactured next month and cost behavior patterns remain unchanged the:

total variable cost will remain unchanged.
fixed costs will increase in total.
variable cost per unit will increase.
total cost per unit will decrease.

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