Answer:
The fixed costs per unit when 20,000 units are produced are $6.05 per unit.
Explanation:
Fixed costs per unit can be determined by using the following formula:
Fixed costs per unit = Total fixed costs/ number of units are produced
In a company, Total fixed costs do not depend on the level of activity (Fixed costs do not change).
In the company, Total fixed cost = $11 x 11,000 = $121,000
When 20,000 units are produced, Fixed costs per unit = $121,000/20,000 = $6.05 per unit.
