ECONOMICS

Detailed explanation-1: -Fixed costs per unit will decrease. As we know, the total fixed costs remain the same within a relevant activity range. So if the activity level increases and the fixed expenses remain the same, the per-unit cost will decrease.

Detailed explanation-2: -Although fixed cost per unit decreases with increases in activity levels, total fixed cost is not affected by changes in the activity level within the relevant range (i.e., total fixed cost remains constant even if the activity level changes.

Detailed explanation-3: -Flexible, rolling budgets empower entrepreneurs to cope with change. This nimble planning process lets you adjust spending throughout the year; benefits include less overspending, more opportunities and speedier responses to changing market and business conditions.

Detailed explanation-4: -Answer and Explanation: Within the relevant range, the total fixed cost remains the same regardless of the level of activity. When the productions levels increase, the fixed cost is spread across the additional units. So, the fixed cost per unit will decrease as the level of activity increases.

Detailed explanation-5: -Fixed costs do not vary with the production level. 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.