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Variable ,,
Fixed cost per unit will decrease when volume increase
i agree with alla newers above
its variable
The answer is Variable. The volume does not affect the amount of fixed cost as it is stable.
variable. .
2 is the answer, the fixed cost per unit in this case will decrease.
The Correct answer is2) Variable
The fixed cost stable as a total and variable with production per unit
fixed cost means the cost remain fixed during the production. in short term it will decrease if the number of unit increase where as variable cost change or say increase as the production or volume increase. you can understand it as rent which is a fix , for the premises is say2000 for a month and in a month you are going to produce say5000 units and you have to pay10000 to the labour which is a variable cost . now in the next month if you will produce8000 units in the same premises the rent will remain same but the labour cost will increase because you have to pay16000 to them.(10000/5000 =2 per unit labour cost,where as fixed cost is0 .4 rent per unit in first month in the next month fixed cost will be0.25).in long term it may change.
fixed cost per- unit decrease when the the volume increase
