Per Unit Fixed Cost

Question

Hello

For example, one car showroom has two cars, one is a Ferrari car and the other is a Suzuki car. Showroom fixed expenses are 100000 per month. When the current month finished the showroom sold both cars.

Per Unit Fixed Cost = 100000/2= 50,000

My question is my per-unit fixed cost will be the same for both cars.

For Ferrari per-unit fixed cost =50,000

For Suzuki per-unit fixed cost =50,000

Kind Regards,

Answer 1

Hi Khurram,

Great job! Your per unit fixed costs will be the same in the example. Tots fixed costs and total units is all that is needed for this calculation.

greg