a company is planning to sell 45,800 units for $2.8 per unit and will break even at this level of sales expenses will be $41,220 what are the company's variable expenses per unit
a company is planning to sell 45,800 units for $2.8 per unit and will break even at this level of sales expenses will be $41,220 what are the company's variable expenses per unit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
a company is planning to sell 45,800 units for $2.8 per unit and will break even at this level of sales expenses will be $41,220 what are the company's variable expenses per unit
Expert Solution
Step 1: Formulas
Break even sales in units = Fixed cost/Contribution margin per unit
Contribution margin per unit = Fixed cost/Break even sales in units
Contribution margin per unit = Selling price - Variable expense per unit
Variable expense per unit = Selling price - Contribution margin per unit
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