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Score: 0 of 10 pts 13 of 16 (1 complete) HW Score: 6.25%, 10 of 160 pts E20-20 (

ID: 2553628 • Letter: S

Question

Score: 0 of 10 pts 13 of 16 (1 complete) HW Score: 6.25%, 10 of 160 pts E20-20 (similar to) Question Help For each total fixed cost listed below, determine the fixed cost per unit when sales are 40, 80, and 160 units. Store rent Manager's salary Equipment lease Depreciation on fixtures 3,200 2,000 800 600 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 40 units. Then calculate the fixed cost per unit and the total fixed cost per unit when sales are 80 and 160 units, respectively (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 40 Units 3,200 2,000 800 600 Enter any number in the edit fields and then click Check Answer.

Explanation / Answer

SOLUTION

Fixed cost per unit = Total fixed costs / No. of units

Total fixed costs ($) 40 units ($) 80 units ($) 160 units ($) Store rent 3,200 80 40 20.00 Manager's salary 2,000 50 25 12.50 Equipment Lease 800 20 10 5.00 Depreciation on fixtures 600 15 7.50 3.75 Total fixed cost per unit 165 82.50 41.25
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