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    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 Preview

    Compute total fixed cost = 30,000 +100,000 +40,000 +10,000 = ...

    Solution Summary

    The expert determines the fixed cost per unit. The annual fixed costs are determined.