When the number of units manufactured increases, the most significant change in unit cost will be reflected as a(n) increase in the fixed element

Finance Mar 15, 2021

When the number of units manufactured increases, the most significant change in unit cost will be reflected as a(n)

1. increase in the fixed element.
2. decrease in the variable element.
3. increase in the mixed element.
4. decrease in the fixed element.

Expert Solution

Answer: d . decrease in the fixed element .

At the time of the increase in the units manufactured in the production process of the company, the most important and the relevant change in the unit costs will be the decrease in the fixed cost or the element of the manufacturing unit.

Archived Solution

Unlocked Solution

You have full access to this solution. To save a copy with all formatting and attachments, use the button below.

Already a member? Sign In

Important Note: This solution is from our archive and has been purchased by others. Submitting it as-is may trigger plagiarism detection. Use it for reference only.

For ready-to-submit work, please order a fresh solution below.

Or get 100% fresh solution

Get Custom Quote