Part 1

Most operating decisions of management focus on a narrow range of activity called the optimal level of production strategic level of production relevant range of production tactical operating level of production

Part 2

Which of the following describes the behavior of a variable cost per unit? varies in decreasing proportion with changes in the activity level varies in increasing proportion with changes in the activity level varies in direct proportion with the activity level remains constant with changes in the activity level

Part 3

As production increases, the fixed cost per unit decreases increases either increases or decreases, depending on the variable costs remains the same