Answer:
$6.00
Explanation:
Calculation for Oerther Corporation average fixed cost per unit assuming that the level of activity is within the relevant range
Calculation for fixed cost per unit
Average Fixed cost per unit = Total fixed cost/Unit
Where :
Total fixed cost = 31,200
Unit =5,200
Hence:
Average Fixed cost per unit= 31,200/5,200
Average Fixed cost per unit= $6.00
Therefore Assuming that the level of activity is within the relevant range the Average Fixed cost per unit would be $6.00
