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2 October, 01:02

Fanning Corporation incurs the following annual fixed costs: Item Cost Depreciation $ 80,000 Officers' salaries 190,000 Long-term lease 42,000 Property taxes 48,000 Required Determine the total fixed cost per unit of production, assuming that Fanning produces 4,000, 4,500, or 5,000 units.

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  1. 2 October, 04:35
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    Instructions are listed below.

    Explanation:

    Giving the following information:

    Item Cost Depreciation $ 80,000 Officers' salaries 190,000 Long-term lease 42,000 Property taxes 48,000 Required Determine the total fixed cost per unit of production, assuming that Fanning produces 4,000, 4,500, or 5,000 units.

    Total fixed costs = 80,000 + 190,000 + 48,000 + 190,000 = 508,000

    4,000 units = 127

    4,500 = 112.89

    5,000 = 101.6
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