During the month of September Mont Blanc produces 20,000 units at a fixed costs of £16 per unit.

C) decrease to £8 per unit 

it depends on Maximum Capacity

if fixed cost cover Capacity for40000 unit so ,,,

when continues production fixed cost per unit will decrease to8 £ 

also Total Fixed Cost  will remain the same when production  of20000 units *16 £ =320,000  

                                                                                                     40000  units *8  £ = 320,000

decrease to £8 per unit as the fixed cost remain same whether production is doubled or reduced to half, if fixed asset is not increased.

The answer is C it will decrease to8 pounds per unit

Correct answer C. decrease to * pounds per unit

C) decrease to £8 per unit 

because fixed cost per unit decrease by increase in production 

The correct answer is C decrease to8 per unit

ie -  0* =,

,/0 units =8 per unit

Decreases to8, as they spent to,/- to produce0. and to produce0 also they spends, only as it is fixed

(A) when there any change in the quantity of production the fixed cost remains same in total i.e

here on producing20,000 units the total fixed cost is3,20,000 £ and that would remain same on any level of producton whether it is above20000 units or below20000 units although the fixed cost per unit will come down to8 £ 

• Asset is shows,the unit per.

• above5,0000unit or below5,0000unit.