ocr: Unit Fixed Cost Graph 100 90 80 70. 60 50. 10 30 20 10 10 15 20 a 3 35 40 45 so Volume/Activity (units) Itshould be clear from the unit fixed cost graph that a business can drive down its unit costs by spreading its fixed costs over a higher volume of business. You may previously have encountered the term minimum operating scale which refers to the fact that below a certain level of activity a business IS unable to drive its unit costs down to an acceptable level and is unable, theretore, to compete successfully in the market place.
(.png)
