If fixed expenses are $45,000, the breakeven in sales dollars is $60,000 and the selling price per unit is $100, then the variable expense per unit is A) approximately $75

Accounting Mar 02, 2021

If fixed expenses are $45,000, the breakeven in sales dollars is $60,000 and the selling price per unit is $100, then the variable expense per unit is

A) approximately $75.

B) approximately $175.

C) approximately $33.33.

D) approximately $25.

Expert Solution

Answer: D

Explanation: D)

Sales $60,000

Selling price 100

Units 600

Sales $60,000

Less fixed expense 45,000

Variable expense 15,000

Per unit 25.00 (15,000 / 600 units)

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