At Midland Company's break-even point of 9,400 units, fixed costs are $225,600 and variable costs are...

Question

Question

At Midland Company's break-even point of 9,400 units, fixed costs are $225,600 and variable costs are $601,600 in total. The unit sales price is:

$112.

$24.

$88.

$40.

$64.

Answer 1

Answer #1

Variable cost per unit=(601600/9400)=$64

Breakeven=Fixed expenses/Contribution margin

Contribution margin=225600/9400

=$24

Contribution margin=Sales-Variable cost

Hence sales price=24+64

=$88

Answer 2

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