Answer: $3.10
Step-by-step explanation:
Accounting breakeven = Fixed costs / Contribution margin
Fixed costs = Fixed costs + Depreciation = 27,000 + 18,000 = $45,000
50,000 units = 45,000 / Contribution margin
Contribution * 50,000 = 45,000
Contribution = 45,000 / 50,000
Contribution margin = 0.9
Contribution margin = Sales - Variable cost
0.9 = 4 - Variable cost
Variable cost = 4 - 0.9
= $3.10