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Setler [38]
3 years ago
9

The selling price of a particular product is $6 per​ unit, fixed costs total $18,000 ​, and the breakeven sales in dollars is $2

4,000 . What would be the variable expense per​ unit?
Business
1 answer:
nlexa [21]3 years ago
8 0

Answer:

$1.5= unitary variable cost

Explanation:

Giving the following information:

The selling price of a particular product is $6 per​ unit, fixed costs total $18,000​, and the breakeven sales in dollars is $24,000

<u>To calculate the unitary variable cost, we need to use the following formula:</u>

Break-even point in units= fixed costs/ contribution margin per unit

Break-even point in units= 24,000/6= 4,000

4,000= 18,000/ (6 - unitary variable cost)

24,000 - 4,000unitary variable cost = 18,000

6,000 = 4,000unitary variable cost

1.5= unitary variable cost

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