ECONOMICS

Detailed explanation-1: -Answer and Explanation: Explanation: As the level of volume of activity increases, the variable cost per unit remains constant while the total variable cost increases. Variable costs are costs that varies directly with a specific volume of activity such as the number of units produced.

Detailed explanation-2: -Presentation Outline. Although variable cost per unit remain constant, total variable cost increases and decreases in proportion to changes in the activity level.

Detailed explanation-3: -As the level of activity increases, the total cost increases by the same proportion. Conversely, as the level of activity decreases, the total cost decreases by the same proportion.

Detailed explanation-4: -Answer and Explanation: A cost that remains constant per unit at various levels of activity is a c) variable cost. The cost of material, for example, remains the same per unit produced and is incurred only if production occurs. These costs are variable because they rise and fall with volume whereas fixed costs do not.