Munoz corporation incurs following annual fixed cost, Accounting Basics

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Munoz corporation incurs following annual fixed cost

Problem

Munoz Corporation incurs the following annual fixed costs:

tem Cost

Depreciation $64,000

Officers' salaries 120,000

Long-term lease 80,000

Property taxes 12,000

Required:

Determine the total fixed cost per unit of production, assuming that Munoz produces 1,000, 1,500, or 2,000 units.

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Accounting Basics: Munoz corporation incurs following annual fixed cost

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Accounting Basics: Munoz corporation incurs following annual fixed cost

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