This Question: 10 pts 45 of 10 (3 complete) This Test: 100 pts possible For each

Question

This Question: 10 pts 45 of 10 (3 complete) This Test: 100 pts possible For each total fixed cost listed below, determine the fixed cost per unit when sales are 55, 110, and 220 units Store rent Manager's salary Equipment lease Depreciation on fixtures $8,800 1,650 1,375 825 Begin by calculating the fixed cost per unit for each of the fixed costs isted, and the total fixed cost per unit when sales are 55 units. Then calculate the fixed cost per unit and the total fixed cost per unit when sales are 110 and 220 units, respectively. (Round all amounts to the nearest cent.) Fixed Cost per Fixed Cost per Unit at 110 Units Fixed Cost per Total Fixed Cost Store rent Managers salary Equipment lease Depreciation on fixtures Total fixed cost per unit Unit at 55 Units Unit at 220 Units $8,800 1,650 1,375 825

Explanation / Answer

Total Fixed cost Fixed cost per unit at 55 Units Fixed cost per unit at 110 Units Fixed cost per unit at 220 Units Store Rent 8800 160 80 40 Manager's Salary 1650 30 15 7.5 Equipment lease 1375 25 12.5 6.25 Depreciation on fixtures 825 15 7.5 3.75 Total fixed cost per unit 12650 230 115 57.5

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