Variable cost per unit, within the relevant range, will. increase as production

Question

Variable cost per unit, within the relevant range, will. increase as production decreases decrease as production decreases remain the same as production levels change decrease as production increases Which of the following statements is true of the behavior of total fixed costs, within the relevant range? They will remain the same as production levels change. They will increase as production decreases They will decrease as production decreases. They will decrease as production increases. Assume that Anna's cellphone service provider charges $6 per month and $0.4 per minute per call. If Anna's current bill is $80, how many calling minutes did Anna use? 220 minutes 200 minutes 185 minutes 170 minutes

Explanation / Answer

1)correct option is "C" -Remain same as production level changes .

Variable cost remain constant within a relevant range and varies in totality

2)correct otpion is " A" -They will remain same as production level changes

Fixed cost remain constant in totality within a relevant range

3) Bill amount = (Minutes used *per min call) =Fixed charge

         80 = ( m * .4) + 6

        80 -6 = .4m

          74 = .4m

     minutes used = 74 /.4 = 185 minutes

correct option is "C"

4)Question 4 is not clearly visible ..please upload it again .

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