Say a companys total costs are $2,500,000 when 100,000 units are made. Of the total...
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Accounting
Say a companys total costs are $2,500,000 when 100,000 units are made. Of the total cost, $400,000 is fixed. Assume all volumes referenced in the question fall within the relevant range.
1) What are the expected total costs when 120,000 units are made?
2) If volume decreases, what happens to the variable cost per unit?
3) If volume increases, what happens to the total variable costs?
4)If volume decreases, what happens to the fixed cost per unit?
5) If volume increases, what happens to the total fixed costs?
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