Answer:
$4 per unit
Explanation:
Fixed costs are those costs which remains same whatever the level of activity is. I t remains constant and do not change with the change in the level of sales / production.
But fixed cost per unit may change with the change in the activity level. if the production volume increases the per unit fixed cost decreases and if the production volume decreases the per unit fixed cost increases
In this question the fixed cost is $300,000 when the production volume is $120,000
Now Volume is revised and decreased to 75,000 units
Fixed cost per unit = $300,000 / 75,000 units = $4 per unit
