Determining fixed cost per unit
Henke Corporation incurs the following annual fixed costs.
Item | Cost |
Depreciation | $ 50,000 |
Officers’ salaries | 120,000 |
Long-term lease | 51,000 |
Property taxes | 9,000 |
Required
Determine the total fixed cost per unit of production, assuming that Henke produces 4,000, 4,500, or 5,000 units.
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