The company's variable expenses per unit is 1.25
<h3>What is breakeven?</h3>
Breakeven is a point at which neither profit nor loss is made. It is used to determine the number of units or dollars of revenue needed to cover total costs.
Number of units to sell = 100,000
Price per unit = 2
Fixed expense = 75000
At break even point :
Revenue = total expenses
Total expenses
= fixed cost + variable cost
Let variable cost = x
Revenue
= units to sell * price per unit
Revenue
= 100,000 * 2
= 200,000
Hence,
Fixed cost + variable cost = Revenue
75000 + x = 200,000
x = 200, 000 - 75000
x = 125,000
Variable cost = 125,000
The variable expense per unit is thus :
Variable expense / number of units
= 125,000 / 100,000
= 1.25 per unit
Hence, the company's variable expenses per unit is 1.25
Learn more about break even here: brainly.com/question/9212451
