Answer:
B. decrease
Explanation:
Fixed costs are those cost which remains the same, whatever the production or sales level.
Variable costs are those cost which vary with the change in the level of production or sales.
Total cost = $97,200 + $111,600 = $208,800
Before change
Total Cost per unit = $208,800 / 3,100 = $67.35
After change
Volume = 3,100 x 2 = 6,200 units
Total Cost per unit = $208,800 / 6,200 = $33.68
So the total cost per unit is decrease from $67.35 to $33.68.
