Computing break-even
The sales price per unit is $13 for the Idaho Co.’s only product. The variable cost per unit is $5. In 2013, the company sold 80,000 units, which was 10,000 units above the break-even point.
Compute the following:
1. Total fixed expenses. (Hint: First compute the contribution margin per unit.)
2. Total variable expense at the break-even volume.
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