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Which of the following statements is correct concerning variable and fixed costs?
a. Variable costs vary in total and fixed costs are constant on a per unit basis
b. Fixed costs are constant in total and variable costs are constant on a per unit basis.
c. Variable costs are constant in total and fixed costs are constant on a per unit basis.
d. Both costs are constant when considered on a per unit basis.
Zigs Industries had the following operating results for 2011: sales = $27,960; cost of goods sold = $19,360; depreciation expense = $4,940; interest expense = $2,190; dividends paid = $1,050.
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