Frisco Corporation is analyzing its fixed and variable costs within its current relevant range. As its cost driver activity changes within the relevant range, which of the following statements is/are correct? As the cost driver level increases, total fixed cost remains unchanged. As the cost driver level increases, unit fixed cost increases. As the cost driver level decreases, unit variable cost decreases. 1, 2, and 3 are correct. 1 and 2 only are correct. 1 only is correct. 2 and 3 only are correct.

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A: The answer to the multiple choice questions are give below.

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A:

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Q: Which of the following statements is CORRECT with respect to fixed costs per unit? Select one:…

A: Fixed cost in total remains constant.  They will not change by change in production.

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A:

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A:

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A: The total cost of production includes the variable costs, fixed costs and mixed costs.

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.