If the selling price per unit is $250, total fixed expenses are $360,000, and the breakeven...

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Question

If the selling price per unit is $250, total fixed expenses are $360,000, and the breakeven...

If the selling price per unit is $250, total fixed expenses are $360,000, and the breakeven sales in dollars is $600,000, what is the variable expense per unit?

		$100.00
		$66.67
		$150.00
		$400.00

business accounting

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Answer 1

Answer #1

Breakeven sales=Fixed expense/Contribution margin ratio

Contribution margin ratio=(360,000/600,000)=0.6

Contribution margin ratio=Contribution margin/Sales

Contribution margin =(0.6*250)=$150

Contribution margin=Sales-Variable cost

Variable cost=(250-150)

=$100 per unit.

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Answer 2

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If the selling price per unit is $250, total fixed expenses are $360,000, and the breakeven...