If the sale price per unit is $26, the variable expense per unit is $19.50, and the break-even sales in dollars is $47,320, what are total fixed expenses?

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Quizplus · Accepted Answer

The break-even point in units can be calculated by dividing the break-even sales in dollars by the sale price per unit: $47,320 / $26 = 1,820 units. The contribution margin per unit is the sale price per unit minus the variable expense per unit: $26 - $19.50 = $6.50. Total fixed expenses can be found by multiplying the contribution margin per unit by the break-even point in units: $6.50 * 1,820 = $11,830.

If the Sale Price Per Unit Is $26, the Variable