Question
Mask Inc, a Hoboken-based Halloween costume maker manufactured 10,000 units of product this month at a cost of $60 per unit. Their variable costs at
Mask Inc, a Hoboken-based Halloween costume maker manufactured 10,000 units of product this month at a cost of $60 per unit. Their variable costs at this activity level came in at 50% of their total unit costs. With Halloween around the corner, they expect to manufacture 10,500 units next month.
Assuming their cost behavior patterns remain unchanged, which of the following statements is true:
a.variable cost per unit in the next month will increase.
b.total cost per unit in the next month will decrease.
c.fixed costs in the next month will increase in total.
d.total variable cost in the next month will remain unchanged.
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