As the number of units produced by a manufacturer decreases:Group of answer choicesFixed costs in total change.Gross Profit increases.Variable costs per unit increase.Fixed costs per unit increase.

As the number of units produced by a manufacturer decreases, the following changes occur:

1. Fixed costs in total do not change. Fixed costs are expenses that do not vary with the level of production, such as rent, salaries, and insurance. These costs remain the same regardless of the number of units produced.

2. Gross profit increases. Gross profit is the difference between total revenue and the cost of goods sold. When the number of units produced decreases, the cost of goods sold also decreases, resulting in a higher gross profit.

3. Variable costs per unit increase. Variable costs are expenses that vary with the level of production, such as raw materials and direct labor. When the number of units produced decreases, the same amount of variable costs is spread over a smaller number of units, leading to an increase in variable costs per unit.

4. Fixed costs per unit increase. Although the total fixed costs remain the same, when the number of units produced decreases, the fixed costs are spread over a smaller number of units. This results in an increase in fixed costs per unit.

In summary, as the number of units produced decreases, the gross profit increases, but both the variable costs per unit and fixed costs per unit increase.