The selling price of a particular product is $38.00 per unit,fixed costs total $175,000,and the breakeven sales in dollars is $875,000,what will the variable expense per unit be?

Question

Quizplus · Accepted Answer

D)
Contribution Margin = Fixed Expense/ Breakeven
= $175,000 / 875,000
= .20
Sales $38
× Contribution Margin % = .20
Contribution Margin $ $7.60
Sales $38
Less Contribution Margin 7.60
Variable Expense $30.40

The Selling Price of a Particular Product Is $38