Zachary Corporation Incurs the following annual fixed costs: Item Depreciation Officers' salaries Long-term lease Property taxes Required Determine the total fixed cost per unit of production, assuming that Zachary produces 6,500, 7,000, or 7,500 units. Note: Round your answers to 2 decimal places. Units Produced Cost $50,000 100,000 90,000 8,000 Fixed cost per unit 6,500 7,000 7,500

Zachary Corporation Incurs the following annual fixed costs: Item Depreciation Officers' salaries Long-term lease Property taxes Required Determine the total fixed cost per unit of production, assuming that Zachary produces 6,500, 7,000, or 7,500 units. Note: Round your answers to 2 decimal places. Units Produced Cost $50,000 100,000 90,000 8,000 Fixed cost per unit 6,500 7,000 7,500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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KrishnaGems Ltd has just installed Equip.-R at a cost of Rs 2,00,000. Themachine has a five yearlife with no residual value. The annual volume ofproduction is estimated at 1,50,000 units, which can be sold at Rs 6 per unit.Annual operating costs are estimated at Rs 2,00,000 (excluding depreciation) at this output level. Fixed costs are estimated at Rs 3 per unitfor the same level of production. KrishnaGems Ltd has just come acrossanother model called Equip.-S capable of giving the same output at anannual operating cost of Rs 1,80,000 (exclusive of depreciation). There willbe no change in fixed costs. Capital cost of this machine is Rs 2,50,000 andthe estimated life is for 5 years with no residual value. The company has anoffer for sale of Equip.-R at Rs 1,00,000. The cost of dismantling andremoval will be Rs 30,000. As the company has not yet commencedoperations, it wants to sell Machine-R and purchase Equip.-S. Nine GemsLtd will be a zero-tax company, for seven years in view of…