Munoz Corporation incurs the following annual fixed costs Item Cost Depreciation
ID: 2472004 • Letter: M
Question
Munoz Corporation incurs the following annual fixed costs
Item Cost
Depreciation 75000
Officers salaries 160,000
Long-term lease 38,000
Property taxes 12,000
Determine the total fixed cost per unit of production, assuming that Munoz produces 4,000, 4,500 and 5,000 units. (Round your answers to 2 decimal places.)
Units produced 4,000 4,500 5,000
Fixed cost per unit
Munoz Corporation incurs the following annual fixed costs
Item Cost
Depreciation 75000
Officers salaries 160,000
Long-term lease 38,000
Property taxes 12,000
Determine the total fixed cost per unit of production, assuming that Munoz produces 4,000, 4,500 and 5,000 units. (Round your answers to 2 decimal places.)
Units produced 4,000 4,500 5,000
Fixed cost per unit
Explanation / Answer
Total fixed cost = 75000 + 160000 + 38000 + 12000
= 285000
Units Produced = 4000 units
Fixed cost per unit = 285000 / 4000 = 71.25
Units produced = 4500 units
Fixed cost per unit = 285000 / 4500 = 63.33
Units produced = 5000 units
Fixed cost per unit = 285000 / 5000 = 57.
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