If the sale price per unit is $64,total fixed expenses are $90,000,and the breakeven sales in dollars is $360,000,what will the variable expense per unit be?

Question

Quizplus · Accepted Answer

The breakeven sales in dollars is calculated as Fixed Expenses / (1 - Variable Expense per Unit / Sale Price per Unit). Given the breakeven sales is $360,000 and fixed expenses are $90,000, the contribution margin ratio is 0.25 (90,000/360,000). Therefore, the variable expense per unit is $64 * (1 - 0.25) = $48.00.

If the Sale Price Per Unit Is $64,total Fixed Expenses