A company observed a decrease in the cost per unit. All other things being equal, which of the following is probably true?

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A company observed a decrease in the cost per unit. All other things being equal, which of the following is probably true?

A. The company is studying a variable cost, and total volume has increased.
B. The company is studying a variable cost, and total volume has decreased.
C. The company is studying a fixed cost, and total volume has increased.
D. The company is studying a fixed cost, and total volume has decreased.
E. The company is studying a fixed cost, and total volume has remained constant.

Answer: C. The company is studying a fixed cost, and total volume has increased.

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