Fixed cost per unit is $10 when 12,000 units are produced and $3 when 40,000 units are produced. what is the total fixed cost when nothing is produced?

No fixed cost per unit

Explanation:

when 12000 units is produced the cost per unit is $10

therefore total cost = 12000 * $10 = $120000

when 40000 units are produced the cost per unit is $3

therefore total cost = 40000 * $3 = $120000

when 0 units are produced the fixed cost per unit is $ x

therefore total cost = 0 * x = $120000

x = $120000 / 0 = No fixed cost

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