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

Algebra ->  Finance -> SOLUTION: Can someone please help me with this problem: Wall Company incurred $30,000 of fixed cost and $40,000 of variable cost when 2,000 units of product were made and sold. If the com      Log On


   



Question 179200: Can someone please help me with this problem:
Wall Company incurred $30,000 of fixed cost and $40,000 of variable cost 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. decrease

Answer by Mathtut(3670) About Me  (Show Source):
You can put this solution on YOUR website!
fix costs will remain the same therefore the cost per unit should decrease.
:
that is based on the reasoning that fixed costs will remain the same. We werent told other wise.