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Break-Even (Sales Dollars) Fixed expenses total $28,678, the break-even sales in dollars is $92,512, and the selling price pe

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Answer #1

Break-even sales in units

Break-even sales in units = Break-even sales in dollars / Selling price per unit

= $92,512 / $98.00 per unit

= 944 Units

Contribution margin per unit

Break-even sales in units = Total fixed Expenses / Contribution margin per unit

Contribution margin per unit = Total fixed Expenses / Break-even sales in units

= $28,978 / 944 Units

= 30.38 per unit

Variable expenses per unit

Contribution margin per unit = Selling price per unit - Variable expenses per unit

Variable expenses per unit = Selling price per unit - Contribution margin per unit

= $98.00 per unit - $30.38 per unit

= 67.62 per unit

“Therefore, the Variable expenses per unit will be $67.62”

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