Cost Analysis – Short Answer

Practice Question

Intro to Managerial Accounting
Cost Analysis
Short Answer

If a company produces 50,000 units and has fixed costs of $500,000, what is the fixed cost per unit?

Answer +
Correct Answer: $10 per unit
Explanation +

Fixed Cost per Unit = Total Fixed Costs ÷ Total Units Produced = $500,000 ÷ 50,000 = $10 per unit.

This is crucial information for cost analysis (Page 51).