*in total*within a reasonable range of volume or activity. For example, the rent might be $2,500 per month and the supervisor's salary might be $3,500 per month. This

*total fixed cost of $6,000*per month will be the same whether the volume is 3,000 units or 4,000 units.

On the other hand, the fixed cost

*per unit*will change as the level of volume or activity changes. Using the amounts above, the

*fixed cost per unit is $2*when the volume is 3,000 units ($6,000 divided by 3,000 units). When the volume is 4,000 units, the

*fixed cost per unit is $1.50*($6,000 divided by 4,000 units).

*To learn more, see the Related Topics listed below:*