Vernon Corporation incurs the following annual fixed costs. Item Cost $ 69,000 120,000 60,000 15,000 Depreciation Officers' salaries Long-term lease Property taxes Required Determine the total fixed cost per unit of production, assuming that Vernon produces 3,500, 4,000, or 4,500 units. (Round your answers to 2 decimal places.) Units Produced 3,500 4,000 4,500 Fixed cost per unit

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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Problem: Module 5 Textbook Problem 1
Learning Objectives:
5-3 Identify and describe fixed, variable, and mixed cost behavior
5-4 Demonstrate the effects of operating leverage on profitability
Vernon Corporation incurs the following annual fixed costs.
Item
Depreciation
officers' salaries
Long-term lease
Property taxes
Cost
$69,000
120,000
60,000
15,000
Required
Determine the total fixed cost per unit of production, assuming that Vernon produces 3,500, 4,000, or 4,500 units. (Round your
answers to 2 decimal places.)
Units Produced
3,500
4,000
4,500
Fixed cost per unit
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Transcribed Image Text:Problem: Module 5 Textbook Problem 1 Learning Objectives: 5-3 Identify and describe fixed, variable, and mixed cost behavior 5-4 Demonstrate the effects of operating leverage on profitability Vernon Corporation incurs the following annual fixed costs. Item Depreciation officers' salaries Long-term lease Property taxes Cost $69,000 120,000 60,000 15,000 Required Determine the total fixed cost per unit of production, assuming that Vernon produces 3,500, 4,000, or 4,500 units. (Round your answers to 2 decimal places.) Units Produced 3,500 4,000 4,500 Fixed cost per unit 台台灣彩 灣券
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