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If the selling price per unit is $45, the variable expense per unit is $40, and total fixed expenses are $55,000 what will th
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Answer #1

Contribution per unit should be calculated first.

Contribution per unit = Selling price – Variable expense per unit

                                    = 45 – 40

                                    = $5

BEP (Units) = Fixed expenses / Contribution per unit

                        = $55,000 / $5

                        = 11,000

Answer: A

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