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
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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.
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)