Calculate the fixed cost and variable cost per unit

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Question - An accountant wanted to perform CVP analysis for the next year and therefore collected the following information:

Factory rent: $7,000 per month

Factory supervisor salary: $60,000 per annum

Cost of direct materials: $30 per unit

Machine depreciation: $1,000 per month

Machine operating expenses: $300 per week

Cost of direct labour: $20 per unit

For the purposes of CVP analysis, calculate the fixed cost and variable cost per unit.

Reference no: EM132578370

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