Creston Enterprises is the exclusive distributor for a tech gadget that sells for $50.00 per unit and has a CM ratio of 40%. The company's fixed expenses are $300,000 per year. The company plans to sell 12,000 units this year. What are the variable expenses per unit?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 10E: Schylar Pharmaceuticals, Inc., plans to sell 130,000 units of antibiotic at an average price of 22...
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Creston Enterprises is the exclusive distributor for a tech gadget
that sells for $50.00 per unit and has a CM ratio of 40%. The
company's fixed expenses are $300,000 per year. The company
plans to sell 12,000 units this year.
What are the variable expenses per unit?
Transcribed Image Text:Creston Enterprises is the exclusive distributor for a tech gadget that sells for $50.00 per unit and has a CM ratio of 40%. The company's fixed expenses are $300,000 per year. The company plans to sell 12,000 units this year. What are the variable expenses per unit?
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