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E21-29 Determining fixed cost per unit For each total fixed cost listed below, determine the fixed cost per unit when sales a
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Answer #1

Answer

For Units Fixed Cost per Unit
50 $                             175 per unit
100 $                         87.50 per unit
200 $                         43.75 per unit

Detailed workings

Total Fixed Cost
Store rent $                  5,000
Manager's salary $                  3,000
Equipment lease $                      500
Depreciation on fixtures $                      250
Total Fixed Cost $                  8,750
Fixed Cost per Unit Total Fixed Cost =
Units
For 50 Units $                  8,750 = $        175
50
For 100 Units $                  8,750 = $    87.50
100
.
For 200 Units $                  8,750 = $    43.75
200

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