For each total fixed cost listed below determine the fixed c
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
Solution
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 | |

