At the break-even point of 2000 units, variable costs are $45000, and fixed costs are $35000. how much is the selling price per
unit? $40. 00 $17. 50 $22. 50 $5. 0
1 answer:
Answer:
$40/unit?
Step-by-step explanation:
I'll assume the the fixed and variable costs are for 2000 units.
Fixed Costs = $35,000
Variable Costs = $45,000
Tota Costs = $80,000
The selling price can be anything. Free and we lose $80,000; $40 each, net profit of $0; $100 each for a net profit of $120,000.
In the absence of any infoprmation regarding selling price (e.g., 50% profit margin), I'd select the $40/unit selling price since that is breakeven.
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