Kramer Manufacturing produces blenders. Its total fixed costs are $30,000. Its variable costs are $55.00 per blender. As production of blenders increases (within the relevant range), fixed costs will

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Business

Lina

17 November, 13:40

Kramer Manufacturing produces blenders. Its total fixed costs are $30,000. Its variable costs are $55.00 per blender. As production of blenders increases (within the relevant range), fixed costs will

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Micaela Vaughan · Answer 1

As the production of blenders increases, unitary fixed costs decreases.

Explanation:

Its total fixed costs are $30,000. Its variable costs are $55.00 per blender.

On unitary bases, variable costs remain constant. On the contrary, fixed costs vary at a unitary level. Now, the same amount of costs is divided by a larger number of units.

As the production of blenders increases, unitary fixed costs decreases.