The formula to calculate the fixed cost per unit is:
\[ FC = \frac{TC}{U} \]
Where:
A fixed cost is a measure of the average fixed cost per unit of a service or product. It is calculated by dividing the total cost by the total number of units sold. Fixed costs do not change with the level of production or sales and include expenses such as rent, salaries, and insurance.
Let's assume the following values:
Using the formula:
\[ FC = \frac{5000}{100} = 50 \text{ per unit} \]
The Fixed Cost is 50 per unit.
Let's assume the following values:
Using the formula:
\[ FC = \frac{7500}{200} = 37.5 \text{ per unit} \]
The Fixed Cost is 37.5 per unit.
