If the Sale Price Per Unit Is $95,total Fixed Expenses

question 90

Multiple Choice

If the sale price per unit is $95,total fixed expenses are $480,000,and the breakeven sales in dollars is $800,000,what is the variable expense per unit?

• A)$63.33
• B)$152.00
• C)$38.00
• D)$57.00

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Definitions:

Indirect

Costs or actions that are not directly traceable to a specific product, service, or activity but are necessary for the business to operate.

Direct

Expenses or costs that can be directly traced to a specific cost object, like a product, department, or project.

Cost Object

Anything for which cost data are desired. Examples of cost objects are products, customers, geographic regions, and parts of the organization such as departments or divisions.

Period Costs

Costs that are not directly tied to the production process and are expensed in the period in which they occur.