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 35, 70, and 140 units Store rent Manager's salary Equipment lease Depreciation on fixtures 4,200 1,400 1,225 175 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 35 units. Then calculate the fixed cost per unit and the total fixed cost per unit when sales are 70 and 140 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 35 Units 4,200 1,400 1,225 175

Explanation / Answer

Calculate fixed cost per unit and total fixed cost per unit :

Fixed cost Total fixed cost Fixed cost per unit at 35 units Fixed cost per unit at 70 units Fixed cost per unit at 140 units Store rent 4200 120 60 30 Manager's salary 1400 40 20 10 Equipment lease 1225 35 17.50 8.75 Depreciation on fixtures 175 5 2.50 1.25 Total 7000 200 100 50

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