how to determine fixed cost per unit

how to determine fixed cost per unit is a key concept in cost accounting, helping businesses assess the cost structure of their products or services. To determine fixed cost per unit, you need to divide total fixed costs by the number of units produced or sold. Fixed costs are expenses that do not change with the level of production, such as rent, salaries, and insurance. By calculating the fixed cost per unit, businesses can better understand their cost base, make pricing decisions, and assess profitability.