As the level of activity increases, how will a mixed cost in total and per unit behave? In Total Per Unit A) Increase Decrease B) Increase Increase C) Increase No effect D) Decrease Increase E) Decrease No effect

There are different kinds of terms used in business. As the level of activity increases, The Total Per Unit will Increase/ Decrease.

Note that;

In total - Increase

Per Unit - Decrease

Due to the increase in level of activity , the fixed cost per unit is said to decreases.

And due to the above, The total fixed cost is known to remains the same. The Examples of fixed costs are;

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A) Increase Decrease

Explanation:

As we know that

Mixed cost is the combination of both fixed cost and the variable cost

Mixed costs are costs in which one component of cost is Fixed and the other component is variable

In equation form,

Mixed cost = Fixed cost + variable cost

In the case of variable cost, the per unit would remain the same and it increased when production increases

But the fixed cost amount would remain the same  but if the production rises the per unit declines

Similarly, Fixed costs remain the same in Total and decreases per unit with increase in production

Therefore option A is correct

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.