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 |
Homework Answers
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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