What is the effect on the cost per unit if activity increased by 10%? A. Decrease by 10% B. Decrease by less than 10% C. Increase by less than 10% D. Remain constant

To determine the effect on the cost per unit if activity increased by 10%, we need to understand the relationship between activity and cost.

If the cost per unit is directly proportional to the activity level, then a 10% increase in activity would result in a 10% decrease in the cost per unit. In this case, the answer would be A. Decrease by 10%.

However, if the cost per unit is not directly proportional to the activity level, the effect on the cost per unit may be different. It could decrease by less than 10% (option B), increase by less than 10% (option C), or remain constant (option D).

To determine the correct answer, we would need more information about the specific relationship between activity and cost.