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Sufra corporation is planning to sell 100,000 units for $2.10 per unit and will break even at this level of sales. fixed expenses will be $87,000. what are the company's variable expenses per unit?

Respuesta :

MrCreighton

breakeven point is the point where costs equal revenues.

in this case

revenues = 100,000 * 2.10 = 210,000

And total costs are fixed costs + (variable costs * units)

So ... 87,000 + 100,000x

210,000 = 87,000 +100,000x

123,000=100,000x

x= 1.23 per unit variable costs

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