Question

Total fixed costs for Diamond Enterprises are $ 800,000. Total​ costs, including both fixed and​ variable, are $ 910,000 if 120,000 units are produced. The fixed cost per unit at 220,000 units would be:__________.

Answer 1

Unitary fixed cost= $36.36

Step-by-step explanation:

Giving the following information:

Total fixed costs for Diamond Enterprises are $ 800,000. Total​ costs, including both fixed and​ variable, are $ 910,000 if 120,000 units are produced.

Unitary fixed cost= total fixed costs/ number of units

Unitary fixed cost= 800,000 / 220,000= $36.36