Problempauls pizza produced and sold 2000 pizzas last month, Ask an Expert

Accounting

Problem:

Paul's Pizza produced and sold 2,000 pizzas last month and had fixed costs of $6,000. If production and sales are expected to increase by 10% next month, which of the following statements is true?

A) Total fixed costs will decrease.

B) Fixed cost per unit will decrease.

C) Total fixed costs will increase.

D) Fixed cost per unit will increase.

Note: Provide support for rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167226

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