Answer:
selling price per unit = $80
Explanation:
Giving the following information:
Company's break-even point of 9,000 units
Fixed costs are $180,000
Total variable costs= $540,000
<u>First, we will calculate the unitary variable cost:</u>
Unitary variable cost= 540,000 / 9,000
Unitary variable cost= $60
<u>Now, the unitary selling price, using the following formula:</u>
Break-even point in units= fixed costs/ contribution margin per unit
9,000 = 180,000 / (selling price per unit - 60)
9,000selling price per unit - 540,000 = 180,000
9,000selling price per unit = 180,000 + 540,000
9,000selling price per unit = 720,000
selling price per unit = 720,000/9,000
selling price per unit = $80
