Determining Fixed Cost per Unit
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Determining Fixed Cost per Unit
Simon Corp. incurs the following annual fixed costs:
Item Cost
Depreciation $ 30,000
Officers' Salaries 100,000
Long-term lease 40,000
Property Taxes 10,000
Determine the total fixed cost per unit of production, assuming that Simon produces
4,000, 4,500, or 5,000 units.
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Solution Summary
The expert determines the fixed cost per unit. The annual fixed costs are determined.
Solution Preview
Compute total fixed cost = 30,000 +100,000 +40,000 +10,000 = ...
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