Say acompany's total costs are$2,500,000 when100,000 units are made. Of the totalcost,

$500,000 is fixed. Assume all volumes referenced in the question fall within the relevant range.

1.What are the expected total costs when 160,000 units aremade?

A. $2,500,000

B. $4,000,000

C. $3,700,000

D. $4,500,000

E. $3,200,000

2.If volumeincreases, what happens to the variable cost perunit?

A. The variable cost per unit increases.

B. The variable cost per unit does not change.

C. The variable cost per unit decreases.

3.If volumedecreases, what happens to the total variablecosts?

A. Total variable costs decrease.

B. Total variable costs do not change.

C. Total variable costs increase.

4.If volumeincreases, what happens to the fixed cost perunit?

A. The fixed cost per unit does not change.

B. The fixed cost per unit increases.

C. The fixed cost per unit decreases.

5.If volumedecreases, what happens to the total fixedcosts?

A. Total fixed costs do not change.

B. Total fixed costs decrease.

C. Total fixed costs increase.