ECONOMICS

Detailed explanation-1: -Total fixed costs remain the same, within the relevant range. However, the fixed cost per unit decreases as production increases, because the same fixed costs are spread over more units. The following two charts depict this relationship between fixed costs and output volume.

Detailed explanation-2: -Fixed costs are output-independent, and the dollar amount incurred remains around a certain level regardless of changes in production volume. Fixed costs are not linked to production output, so these costs neither increase nor decrease at different production volumes.

Detailed explanation-3: -Answer and Explanation: b) False, as the volume increases, fixed cost per unit of output will fall. Variable costs are those that are a portion of the price per unit and remain the same per unit as volume increases.

Detailed explanation-4: -Sales and Unit Fixed Costs You just divide the number of units sold by your total fixed costs. This means that fixed cost per unit increases when sales decrease, and when sales increase, your fixed cost per unit will decrease, according to finance website Accounting Coach.

Detailed explanation-5: -While the total amount of fixed cost changes with the level of production, fixed cost per unit remains constant as volume changes.