Complete the following table to indicate your understanding of fixed and variable cost behavior by inserting one of the following responses in each box: "Remain constant," "Increase," or "Decrease."?When Activity IncreasesWhen Activity DecreasesUnit fixed costs??Total fixed costs??Unit variable costs??Total variable costs??
What will be an ideal response?
? | When Activity Increases | When Activity Decreases |
Unit fixed costs | Decrease | Increase |
Total fixed costs | Remain constant | Remain constant |
Unit variable costs | Remain constant | Remain constant |
Total variable costs | Increase | Decrease |
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