SOLUTION: Can someone please, please help me with this problem: Wall Company incurred $30,000 of fixed cost and $40,000 of variablecost when 2,000 units of product were made and sold. If

Question 176746: Can someone please, please help me with this problem:
Wall Company incurred $30,000 of fixed cost and $40,000 of variablecost when 2,000 units of product were made and sold. If the company's volume doubles, the cost per unit will
a. stay the same
b. double as well
c. increase but willnot double
d. decrease
Answer by MathTherapy(10552) (Show Source): You can put this solution on YOUR website!
Can someone please, please help me with this problem:
Wall Company incurred $30,000 of fixed cost and $40,000 of variablecost when 2,000 units of product were made and sold. If the company's volume doubles, the cost per unit will
a. stay the same
b. double as well
c. increase but willnot double
d. decrease

Fixed cost remain constant, while variable cost will definitely increase. But, even if the variable cost doubles, the fixed cost remains constant, thereby increasing the cost per unit, but not doubling it. Therefore, I would go along with CHOICE C.
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