Question

Total fixed costs for Randolph Manufacturing are $ 764,000. Total​ costs, including both fixed and​ variable, are $ 1 comma 040 comma 000 if 200, 000 units are produced. The fixed cost per unit at 228, 500 units would be closest to:________

Answer 1

$3.35 per unit

Step-by-step explanation:

The computation of the fixed cost per unit is shown below:

Given data

Total fixed cost = $764,000

Total cost i.e fixed cost + variable cost = $1,040,000

Total units produced = 200,000

The units is 228,500

So, the fixed cost per unit is

= Total fixed cost ÷ Number of units

= $764,000 ÷ 228,500 units

= $3.35 per unit

By dividing the total fixed cost with the number of units we can get the fixed cost per unit