Sufra Corporation is planning to sell 120,000 units for $2.70 per unit and will break even...
Sufra Corporation is planning to sell 120,000 units for $2.70 per unit and will break even at this level of sales. Fixed expenses will be $96,000. What are the company's variable expenses per unit?
Homework Answers
Breakeven=Fixed expenses/Contribution margin
Hence Contribution margin per unit =96,000/120,000
=$0.8 per unit
Contribution margin=Sales-Variable cost
Variable cost =2.7-0.8
=$1.9 per unit
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