The selling price of a particular product is $7.00 per unit,fixed costs total $18,000,and the breakeven sales in dollars is $24,000.What would be the variable expense per unit?

Question

Quizplus · Accepted Answer

C)
Fixed Expenses $18,000 / Contribution Margin Ratio (x)= $24,000 BE Sales
X = 75%
Sales $7 × 75% = $5.25 Contribution Margin
Sales $7
Less Contribution Margin 5.25
= Variable expense $1.75

The Selling Price of a Particular Product Is $7