Determine the total fixed cost per unit of production,
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Adams Corporation incurs the following annual fixed costs:
Item
Depreciation
Officers' salaries
Long-term lease
Property taxes
Cost
$68,000
190,000
Units Produced
Fixed cost per unit
60,000
12,000
Required
Determine the total fixed cost per unit of production, assuming that Adams produces 6,000, 6,500, or 7,000 units.
Note: Round your answers to 2 decimal places.
6,000
6,500
7,000
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