Question

The selling price of a particular product is $6 per​ unit, fixed costs total $18,000 ​, and the breakeven sales in dollars is $24,000 . What would be the variable expense per​ unit?

Answer 1

$1.5= unitary variable cost

Step-by-step explanation:

Giving the following information:

The selling price of a particular product is $6 per​ unit, fixed costs total $18,000​, and the breakeven sales in dollars is $24,000

To calculate the unitary variable cost, we need to use the following formula:

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 24,000/6= 4,000

4,000= 18,000/ (6 - unitary variable cost)

24,000 - 4,000unitary variable cost = 18,000

6,000 = 4,000unitary variable cost

1.5= unitary variable cost