Final answer:
To calculate the variable expense per unit, subtract the total fixed expenses from the break-even sales to get total variable costs, divide this by the number of units at break-even. The variable expense per unit is $67.62.
Step-by-step explanation:
The question involves calculating the variable expense per unit considering the total fixed expenses, the selling price per unit, and the break-even sales in dollars. To find the variable expense per unit, you first calculate the total variable costs by subtracting total fixed expenses from break-even sales. Then, you divide the total variable costs by the number of units at the break-even point to find the variable expense per unit.
First, let's find the total variable costs:
Break-even sales = Fixed expenses + Total variable costs
$92,512 = $28,678 + Total variable costs
Total variable costs = $92,512 - $28,678
Total variable costs = $63,834
Next, we calculate the number of units at break-even by dividing break-even sales by the selling price per unit:
Number of units at break-even = Break-even sales / Selling price per unit
Number of units at break-even = $92,512 / $98
Number of units at break-even = 943.59 units (rounded to the nearest unit is 944)
Now, we can find the variable expense per unit by dividing the total variable costs by the number of units at break-even:
Variable expense per unit = Total variable costs / Number of units at break-even
Variable expense per unit = $63,834 / 944
Variable expense per unit = $67.62
Therefore, the answer is B. $67.62.