Question

The following information is provided: Sales price per unit $480 Fixed costs $60,000 Break-even in units...

The following information is provided:

Sales price per unit $480
Fixed costs $60,000
Break-even in units 2,000

The variable cost is:

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Answer #1

Breakeven=Fixed expenses/Contribution margin

Contribution margin=(60,000/2000)=$30 per unit

Contribution margin=Sales-Variable cost

Variable cost=(480-30)

=$450 per unit   

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