What happens to each of these as volume increases. Total fixed cost, total variable cost, fixed cost per unit, variable cost per unit.Assume all values stay within their relevant range.

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pohnpei397 eNotes educator| Certified Educator

Total fixed costs will always stay fixed.  That is why they are called fixed costs.  So total fixed costs will not change.  However, because the number of units produced is increasing, they fixed cost per unit produced will go down (more units produced, but the same fixed costs).

The total variable costs must certainly go up.  Every time you make another unit of product your total variable costs will, by definition, increase.  Given the information here, we cannot know if the variable costs per unit will change.  They may go up, or down, or stay the same.  There will be a point where diminishing returns sets in and variable costs per unit will increase as more is produced.  However, there is no way of knowing whether this firm has reached this point yet.