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

Question

Quizplus · Accepted Answer

To find the variable expense per unit, use the break-even formula: Break-even sales = Fixed expenses / (Sale price per unit - Variable expense per unit). Plugging in the values: $360,000 = $90,000 / ($64 - Variable expense per unit). Solving for the variable expense per unit gives $48.00.

If the Sale Price Per Unit Is $64, Total Fixed