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At the break-even point of 2000 units, variable costs are $45000, and fixed costs are $35000. how much is the selling price per unit? $40. 00 $17. 50 $22. 50 $5. 0

Sagot :

Rspill6idn

Answer:

$40/unit?

Step-by-step explanation:

I'll assume the the fixed and variable costs are for 2000 units.

Fixed Costs = $35,000

Variable Costs = $45,000

Tota Costs = $80,000

The selling price can be anything. Free and we lose $80,000; $40 each, net profit of $0; $100 each for a net profit of $120,000.

In the absence of any infoprmation regarding selling price (e.g., 50% profit margin), I'd select the $40/unit selling price since that is breakeven.

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