Question

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

Answer 1

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

Calculate fixed cost per unit :

Total fixed cost		Fixed cost per unit at 60 units
Store rent	1200	20
Manger's salary	900	15
Equipment lease	450	7.50
Depreciation on fixtures	300	5
Total fixed cost per unit		47.50

Calculate fixed cost per unit :

Total fixed cost		Fixed cost per unit at 120 units
Store rent	1200	10
Manger's salary	900	7.50
Equipment lease	450	3.75
Depreciation on fixtures	300	2.50
Total fixed cost per unit		23.75