Question

At the break-even point of 1000 units, variable costs are $60000, and fixed costs are $35000. How much is the selling price per unit?

Answer 1

the selling price per unit is $95

Step-by-step explanation:

The computation of the selling price per unit is shown below:

Selling price per unit is

= Total cost ÷ break even points

where,

Total cost is

= Variable cost + fixed cost

= $60,000 + $35,000

= $95,000

And, the break even point is 1,000 units

So, the selling price per unit is

= $95,000 ÷ 1,000 units

= $95

Therefore, the selling price per unit is $95