Calculate the fixed cost per unit for year 1

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Reference no: EM133551395

Question 1

All Electronics Ltd is a manufacturing company which produces various electronic devices. The following is a summary of the total cost and units.

	Units sold	Total cost to company
YEAR 1	50	R 6 200
YEAR 2	135	R 15 000
YEAR 3	30	R 3 500
YEAR 4	60	R 6 900
YEAR 5	100	R10 800

1.1 Calculate the fixed costs for Year 5 using the high/low method. Round off your answer to the nearest Rand.

1.2 Based on your answer in 1.1, calculate the fixed cost per unit for Year 1.

1.3 Assuming that the total fixed cost is R1 680, calculate the number of units that will be produced at a variable cost of R350 per unit to cost a total of R19 500.

Reference no: EM133551395

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