Determining Fixed Cost per Unit
Simon Corp. incurs the following annual fixed costs:
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.
Compute total fixed cost = 30,000 +100,000 +40,000 +10,000 = ...
The expert determines the fixed cost per unit. The annual fixed costs are determined.