What is the variable cost of a product if the fixed costs associated with it total $6,000, the break even point is 300 units, and selling price is $45?

Question

Quizplus · Accepted Answer

The break-even point formula is: Fixed Costs / (Selling Price - Variable Cost) = Break-even Quantity. Plugging in the values: $6,000 / ($45 - Variable Cost) = 300. Solving for the variable cost gives $25.

What Is the Variable Cost of a Product If the Fixed