Question

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 $5.00

Answer 1

The selling price per unit will be $22.50. Provided to us are details like the units to be produced as 2000 units. Other than that information regarding the variable costs of $45,000 and fixed costs of $35000 are also provided.

To calculate the selling price the following formula will have to be used.

Break-even point = $\frac{Fixed Cost}{Sales - Variable Cost}$

Let the Sales be denoted by x.

$2000$ = $\frac{35,000}{x - 45,000}$

$2000x - 90,00,000 = 35,000$

$2000x = 900,35,000$

x = $\frac{90035000}{2000}$

x = $ $45017.50$

Sales = $ $45017.50$

The selling price per unit is $\frac{Sales}{Number of units}$

Selling Price = $\frac{45017.5}{2000}$

The selling price is $$22.50$

1. Learn more about the calculation of fixed costs from

https://brainly.com/question/15274553

2. Learn more about the break-even point from:

https://brainly.com/question/13584378

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