PART A.

For each total fixed cost listed below, determine the fixed cost per unit when sales are

25,

50,

and

100

units.

Store rent	$3,500
Manager's salary	2,000
Equipment lease	750
Depreciation on fixtures	250

Begin by calculating the fixed cost per unit for each of the fixed costs listed, and the total fixed cost per unit when sales are

25

units. Then calculate the fixed cost per unit and the total fixed cost per unit when sales are

50

and

100

units, respectively. (Round all amounts to the nearest cent.)

		Fixed Cost per
Total Fixed Cost		Unit at 25 Units
Store rent	$3,500
Manager's salary	2,000
Equipment lease	750
Depreciation on fixtures	250
Total fixed cost per unit

Fixed Cost per

Unit at 50 Units

Fixed Cost per

Unit at 100 Units

PART B.

Chase

Street Barber Shop pays

$35

per month for water for the first

10,000

gallons and

$2.25

per thousand gallons above

10,000

gallons. Calculate the total water cost when the barber shop uses

6,000

gallons,

11,000

gallons, and

14,000

gallons.

(Do not round interim calculations. Round your final answers to the nearest cent.)

Usage	Total Water Cost
6,000 gallons
11,000 gallons
14,000 gallons

PART C.

For each variable cost per unit listed below, determine the total variable cost when units produced and sold are

30,

60,

and

120

units.

Direct materials	$30
Direct labor	65
Variable overhead	5
Sales commission	7

Begin by calculating the total variable cost for each variable cost per unit listed, and the total variable cost when sales are

30

units. Then calculate the total variable cost when sales are

60

and

120

units, respectively.

		Variable Cost
Variable cost per unit		at 30 Units
Direct materials	$30
Direct labor	65
Variable overhead	5
Sales commission	7
Total variable cost

Variable Cost

at 60 Units

Variable Cost

at 120 Units