Christopher's Lunch Box sells gourmet take-out lunches. These lunches are so good, they are the only item on the menu. In recent years, Christopher's breakeven point has been 40,000 lunches. Annual fixed cost are $200,000 and the lunches have a sales price of $15.
What is the variable cost per unit of each lunch?

Question

Christopher's Lunch Box sells gourmet take-out lunches. These lunches are so good, they are the only item on the menu. In recent years, Christopher's breakeven point has been 40,000 lunches. Annual fixed cost are $200,000 and the lunches have a sales price of $15. 
What is the variable cost per unit of each lunch?

Quizplus · Accepted Answer

The Answer of Christopher's Lunch Box sells gourmet take-out lunches. These lunches are so good, they are the only item on the menu. In recent years, Christopher's breakeven point has been 40,000 lunches. Annual fixed cost are $200,000 and the lunches have a sales price of $15. 
What is the variable cost per unit of each lunch?

Christopher's Lunch Box Sells Gourmet Take-Out Lunches