If the sales price per unit is $100, the total fixed costs are $75,000, and the break- even volume in dollar sales is $250,000, then the variable cost per unit is:
A) $70
B) $30
C) $100
D) $75,000

Question

Quizplus · Accepted Answer

The break-even point in dollar sales is calculated as Fixed Costs / (1 - Variable Cost per Unit / Sales Price per Unit). Given the break-even sales of $250,000 and fixed costs of $75,000, we can solve for the variable cost per unit: $75,000 / ($250,000 / $100) = $70.

If the Sales Price Per Unit Is $100, the Total