The Clauson Company has total fixed costs of $400,000.They also have $120,000 in total variable costs.These costs exist at a production level of 80,000 units.The fixed cost per unit is:
A)$6.50.
B)$1.50.
C)$5.00.
D)$3.50.

Question

Quizplus · Accepted Answer

Fixed cost per unit is calculated by dividing total fixed costs by the number of units produced. $400,000 / 80,000 units = $5.00 per unit.

The Clauson Company Has Total Fixed Costs of $400,000