11. H&H Bagels sells bagels in packages of six bagels. In April 2020, H&H sold 15,000 packages with a unit price of $8.80 each. H&H had $45,895 of fixed costs and calculated its breakeven volume at 6,850 packages for the month of April. What were H&H's variable costs per unit and how much did H&H incur in total variable costs in April? A. $2.10 and $31,500 B. $6.70 and $100,500 C. $2.10 and $14,385 D. $6.70 and $45,895
11. H&H Bagels sells bagels in packages of six bagels. In April 2020, H&H sold 15,000 packages with a unit price of $8.80 each. H&H had $45,895 of fixed costs and calculated its breakeven volume at 6,850 packages for the month of April. What were H&H's variable costs per unit and how much did H&H incur in total variable costs in April? A. $2.10 and $31,500 B. $6.70 and $100,500 C. $2.10 and $14,385 D. $6.70 and $45,895
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of...
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Question
![11. H&H Bagels sells bagels in packages of six bagels. In April 2020, H&H sold 15,000 packages with a
unit price of $8.80 each. H&H had $45,895 of fixed costs and calculated its breakeven volume at 6,850
packages for the month of April. What were H&H's variable costs per unit and how much did H&H incur
in total variable costs in April?
A. $2.10 and $31,500
B. $6.70 and $100,500
C. $2.10 and $14,385
D. $6.70 and $45,895](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9dbbe61c-7610-4db2-a0d1-8f558f7f1156%2F51b91f35-b5ec-4b4f-9d2f-bca7a030dd0b%2F8gx60qa.jpeg&w=3840&q=75)
Transcribed Image Text:11. H&H Bagels sells bagels in packages of six bagels. In April 2020, H&H sold 15,000 packages with a
unit price of $8.80 each. H&H had $45,895 of fixed costs and calculated its breakeven volume at 6,850
packages for the month of April. What were H&H's variable costs per unit and how much did H&H incur
in total variable costs in April?
A. $2.10 and $31,500
B. $6.70 and $100,500
C. $2.10 and $14,385
D. $6.70 and $45,895
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
Step 1
The correct option is option “A”.
Total Sales = 15000*8.80 = $132,000
Fixed Costs = $45,895
Break Even Sales ( Units) = Total fixed costs/ Contribution margin per unit
6850 = 45,895 / contribution margin per unit
Contribution margin per unit = $6.70
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Solved in 2 steps
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