If fixed expenses are $40,000,the break-even in sales dollars is $64,000,and the selling price per unit is $80,then the variable expense per unit is:

Question

Quizplus · Accepted Answer

To find the variable expense per unit, we can use the formula:

Variable Expense per Unit = (Sales Price per Unit - Break-Even Point per Unit)

Sales Price per Unit = $80
Break-Even Point (BEP) per Unit = ($40,000 ÷ Number of Units Sold at BEP)

From the given information, we can calculate the Number of Units Sold at BEP as:

BEP = $64,000 ÷ $80 = 800 units

Therefore, the Variable Expense per Unit = ($80 - $40,000 ÷ 800) = $30

Hence, the correct option is C.

If Fixed Expenses Are $40,000,the Break-Even in Sales Dollars Is