The selling price of a particular product is $5

Accounting Mar 05, 2021

The selling price of a particular product is $5.00 per unit, the variable expense is $3.00 per unit, and the breakeven sales in dollars is $18,660, what are total fixed expenses?

A) $12,440

B) $1,866

C) $3,732

D) $7,464

Expert Solution

Answer: D

Explanation: D)

Sales $5.00

Var. Exp (3.00)

Contribution Margin 2.00

Breakeven Sales $18660

Divide: Sales Price / 5.00

Breakeven Sales Units 3,732

× Contribution Margin 2.00

Fixed Expense 7,464

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