Total fixed costs for Purple Figs Company are $92,000. Total costs, both fixed and variable are $210,000 if 90,000 units are produced. The fixed cost per unit at 90,000 units would be
A)$1.31/unit.
B)$1.02/unit.
C)$2.33/unit.
D)$3.36/unit.

Question

Quizplus · Accepted Answer

The fixed cost per unit is calculated by dividing the total fixed costs by the number of units produced. So, $92,000 / 90,000 units = $1.02/unit.

Total Fixed Costs for Purple Figs Company Are $92,000