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

ID: 2610007 • Letter: F

Question

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

30, 60, and 120 units.

Store rent

$1,200

Manager's salary

900

Equipment lease

450

Depreciation on fixtures

300

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 30 units. Then calculate the fixed cost per unit and the total fixed cost per unit when sales are 60 and 120 units, respectively. (Round all amounts to the nearest cent.)

Fixed Cost per

Total Fixed Cost

Unit at 30 Units

Store rent

$1,200

Manager's salary

900

Equipment lease

450

Depreciation on fixtures

300

Total fixed cost per unit

Explanation / Answer

Calculate fixed cost per unit :

Calculate fixed cost per unit :

Calculate fixed cost per unit :

Total fixed cost Fixed cost per unit at 30 units Store rent 1200 40 Manger's salary 900 30 Equipment lease 450 15 Depreciation on fixtures 300 10 Total fixed cost per unit 95