Swift Automotive Supplies is the exclusive distributor for an automotive product that sells for $50 per unit and has a CM ratio of 40%. The company's fixed expenses are $300,000 per year, and it plans to sell 7,500 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 16E
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What are the variable expenses per unit on these financial accounting question?

Swift Automotive Supplies is the exclusive
distributor for an automotive product that sells for
$50 per unit and has a CM ratio of 40%. The
company's fixed expenses are $300,000 per year,
and it plans to sell 7,500 units this year.
What are the variable expenses per unit?
Transcribed Image Text:Swift Automotive Supplies is the exclusive distributor for an automotive product that sells for $50 per unit and has a CM ratio of 40%. The company's fixed expenses are $300,000 per year, and it plans to sell 7,500 units this year. What are the variable expenses per unit?
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