question archive If fixed expenses are $45,000, the breakeven in sales dollars is $60,000 and the selling price per unit is $100, then the variable expense per unit is A) approximately $75

If fixed expenses are $45,000, the breakeven in sales dollars is $60,000 and the selling price per unit is $100, then the variable expense per unit is A) approximately $75

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If fixed expenses are $45,000, the breakeven in sales dollars is $60,000 and the selling price per unit is $100, then the variable expense per unit is

A) approximately $75.

B) approximately $175.

C) approximately $33.33.

D) approximately $25.

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Answer:  D

Explanation:  D)

Sales                                              $60,000

Selling price                                        100

Units                                                     600

 

Sales                                              $60,000

Less fixed expense                      45,000

Variable expense                          15,000

Per unit                                              25.00     (15,000 / 600 units)