For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10,...

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For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10,...

For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10, income tax rate of 20%, targeted net income of $10,000.

Assume all other variables do not affect the cost volume profit relationship, if sales in units (quantities) increase, fixed costs per unit

	1.	increase
	2.	decrease
	3.	remain constants
	4.	we cannot find, we need more information

business accounting

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Answer 1

Answer #1

When fixed cost is fixed and sales in units is increase then fixed cost per unit would be decrease because Fixed cost/No of units = Fixed cost per unit

So answer is 2) Decrease

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Answer 2

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