This Question: 1 pl This Qulz: 40 pts possh For each total txed cosl lested beli

ID: 2508533 • Letter: T

Question

This Question: 1 pl This Qulz: 40 pts possh For each total txed cosl lested beliow, determine the fxed cost per unt when sales are 58,110, and 220 Store rent Managers salary Equipment lease Deprecsaton on Iitures S 8,800 ,850 1375 ,100 begn by catculating the fxed cost per nlt for each of the faed costs Ined, and th od conl ger unt whon salion are s5 uns Then caltd cost perunt and the Fised Cost perFised Cost pee Fixed Cont p Total Fixed Cost Store sent Managir's salary at 55 Units Unit at 110 Units Unit at 220 Units 1,450 1 375 qupment lease on Estures 0

Explanation / Answer

Solution:

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

$8,800

$160.00

(8800/55)

$80.00

(8800/110)

$40.00

(8800/220)

Manager's Salary

$1,650

$30.00

(1650/55)

$15.00

(1650/110)

$7.50

(1650/220)

Equipment Lease

$1,375

$25.00

$12.50

$6.25

Depreciation on fixtures

$1,100

$20.00

$10.00

$5.00

Total Fixed Cost Per Unit

$235.00

$117.50

$59.00

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