Answer:
The sales price per unit will be $6.75.
Explanation:
The break even point is where the total revenue is total cost such that profit equals zero.
The break even level of output is 5,000 units.
The fixed costs is $30,000.
The variable cost per unit is $.75.
The total variable cost is
= [tex].75\ \times\ 5,000[/tex]
= $3750
The total cost will be
= $30,000 + $3,750
= $33,750
Which is also equal to total revenue
Now,
Total revenue = [tex]Price\ \times\ Quantity[/tex]
$33,750 = [tex]Price\ \times\ 5,000[/tex]
Price = [tex]\frac{33,750}{5,000}[/tex]
Price = $6.75
