If the selling price per unit is $32, the variable expense per unit is $19

Accounting Mar 04, 2021

If the selling price per unit is $32, the variable expense per unit is $19.50, and the breakeven sales in dollars is $44,800, what are total fixed expenses?

A) $28,718

B) $17,500

C) $1,400

D) $112

Expert Solution

Answer: B

Explanation: B)

Sales $32.00

Less Variable expenses 19.50

Contribution Margin $12.50

Breakeven Sales 44,800 divided by Sales $32 × Contribution Margin $12.50 = $17,500

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