Brawny Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were:

Materials cost	$	5,200
Labor cost		2,600
Rent		1,200
Depreciation		1,700
Other fixed costs		4,600
Total	$	15,300

Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, how much is the fixed cost per unit on the August budget?

Multiple Choice

• $107.14

• $125.00

• $218.57

• $130.00

• None of these answer choices is correct.