Determining fixed cost per unit
Bender Corporation incurs the following annual fixed costs.
|
Item |
Cost |
|
Depreciation |
$ 34,000 |
|
Officers’ salaries |
120,000 |
|
Long term lease |
42,000 |
|
Property taxes |
9,000 |
Required
Determine the total fixed cost per unit of production, assuming that Bender produces 4,000, 4,500, or 5,000 units.