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Question - An accountant wanted to perform CVP analysis for the next year and therefore collected the following information:
Factory rent: $7,000 per month
Factory supervisor salary: $60,000 per annum
Cost of direct materials: $30 per unit
Machine depreciation: $1,000 per month
Machine operating expenses: $300 per week
Cost of direct labour: $20 per unit
For the purposes of CVP analysis, calculate the fixed cost and variable cost per unit.
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