If the selling price per unit is $10.00,the variable expense per unit is $5.75,and the breakeven sales in dollars is $465,200,what are total fixed expenses?

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Quizplus · Accepted Answer

To find the total fixed expenses, first calculate the contribution margin per unit, which is the selling price per unit minus the variable expense per unit: $10.00 - $5.75 = $4.25. Then, divide the breakeven sales in dollars by the contribution margin per unit to find the breakeven point in units: $465,200 / $4.25 = 109,435 units. Finally, multiply the breakeven point in units by the contribution margin per unit to find the total fixed expenses: 109,435 units * $4.25 = $197,710.

If the Selling Price Per Unit Is $10