At the break-even point of 2,000 units, variable costs are $55,000, and fixed costs are $32,000.How much is the selling price per unit?

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Quizplus · Accepted Answer

At the break-even point, total revenue equals total costs (variable costs + fixed costs). Total costs are $55,000 (variable) + $32,000 (fixed) = $87,000. To find the selling price per unit, divide total costs by the number of units: $87,000 / 2,000 units = $43.50 per unit.

At the Break-Even Point of 2,000 Units, Variable Costs Are