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Question(s) / Instruction(s):

An increase in the level of activity will have the following effects on unit costs for variable and fixed costs:

a)            Unit variable cost, increase; Unit fixed cost, decrease.

b)            Unit variable cost, remains constant; Unit fixed cost, remains constant.

c)            Unit variable cost, decrease; Unit fixed cost, remains constant.

d)            Unit variable cost, remains constant; Unit fixed cost, decrease.

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