Mountain Gear Company is the exclusive distributor for a camping product that sells for $78.50 per unit and has a CM ratio of 40%. The company's fixed expenses are $325,600 per year. The company plans to sell 6,500 units this year. What are the variable expenses per unit?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5EB: Cadre, Inc., sells a single product with a selling price of $120 and variable costs per unit of $90....
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Mountain Gear Company is the exclusive distributor
for a camping product that sells for $78.50 per unit
and has a CM ratio of 40%. The company's fixed
expenses are $325,600 per year. The company plans to
sell 6,500 units this year.
What are the variable expenses per unit?
Transcribed Image Text:Mountain Gear Company is the exclusive distributor for a camping product that sells for $78.50 per unit and has a CM ratio of 40%. The company's fixed expenses are $325,600 per year. The company plans to sell 6,500 units this year. What are the variable expenses per unit?
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