The following data pertain to Epsom Corporation's operations:
-The variable expense per unit is:

Question

The following data pertain to Epsom Corporation's operations: 
-The variable expense per unit is:

Quizplus · Accepted Answer

CM ratio = 1 - Variable expense ratio
0.40 = 1.00 - Variable expense ratio
Variable expense ratio = 1.00 - 0.40 = 0.60
Variable expense ratio = Variable expense per unit F1F1F1S1F1F1F10 Selling price
0.60 = Variable expense per unit F1F1F1S1F1F1F10 $25 per unit
Variable expense per unit = 0.60 F1F1F1S1F1F1F10 $25 per unit = $15 per unit

The Following Data Pertain to Epsom Corporation's Operations