Case sales price per unit variable costs per unit total fixed costs break-even in units are:
Case 1:
Break-even point (Units) = Fixed cost / Contribution margin per unit
= $40,000 / ($20 - $16)
= $40,000 / $4
= 10,000 units
Case 2:
Break-even point (Units) = Fixed cost / Contribution margin per unit
5,000 = Fixed cost / ($25 - $5)
5,000 = Fixed cost / $20
Fixed cost = $100,000
Case 3:
Break-even point (Units) = Fixed cost / Contribution margin per unit
9,000 = $81,000 / ($29 - Variable costs per unit)
9,000 * ($29 - Variable cost) = $81,000
$261,000 - 9,000 * Variable cost = $81,000
$180,000 = 9,000 * Variable cost
Variable cost = $180,000 / 9,000
Variable cost = $20
Case 4:
Break-even point (Units) = Fixed cost / Contribution margin per unit
8,000 = $48,000 / (Sales price per unit - $9)
8,000 * (Sales price per unit - $9) = $48,000
(8,000 * Sales price per unit) - $72,000 = $48,000
Sales price per unit = $120,000 / 8,000
Sales price per unit = $15
Variable expenses are expenses that alternate because the quantity changes. Examples of variable expenses are uncooked materials, piece-charge labor, manufacturing supplies, commissions, transport expenses, packaging supplies, and credit score card fees. In a few accounting statements, the Variable expenses of manufacturing are known as the “Cost of Goods Sold.
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