The selling price of a particular product is $85

Accounting Mar 05, 2021

The selling price of a particular product is $85.00 per unit, the variable expense is $49.00 per unit, and the breakeven sales in dollars is $340,000, what are total fixed expenses?

A) $111

B) $144,000

C) $4,000

D) $249,796

Expert Solution

Answer: B

Explanation: B)

Sales $85.00

Less Variable expenses 49.00

Contribution Margin $36.00

Breakeven Sales 340,000 divided by Selling Price 85 × Contribution Margin 36 = $144,000

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