For each total fixed cost listed below, determine the fixed cost per unit when s

Question

For each total fixed cost listed below, determine the fixed cost per unit when sales are 55, 110, and 220 units. Store rent Managers salary Equipment lease Depreciation on fixtures $ 7.700 3,300 1,925 550 Begin by calculating the fixed cost per unit for each of the fixed costs listed, and the total fixed cost per unit when sales are 55 units. Then calculate the foxed cost per unit and the total fixed cost per unit when sales are 110 and 220 units, (Round all amounts to the nearest cent.) Fixed Cost per Total Fixed Cost Store rent Manager's salary Equipment lease Depreciation on fixtures Total fixed cost per unit Unit at 55 Units 7,700 3,300 1,925 550

Explanation / Answer

Calculate fixed cost per unit :

Fixed cost per unit at 55 units Fixed cost per unit at 110 units Fixed cost per unit at 220 units Store rent 7700 140 70 35 Manager's salary 3300 60 30 15 Equipment lease 1925 35 17.5 8.75 Depreciation on fixtures 550 10 5 2.50 Total fixed cost per unit 245 122.50 61.25

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