Calculation of Variable Costs Per Unit be in Order to Breakeven Â
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Question
The following information is available for the 24,000 units of X Company’s one product sold in 2015:
Selling price $49.00
Variable costs per unit $28.00
Total fixed costs $1,128,000
In 2016, X Company expects sales to increase to 28,000 units, but it is uncertain what variable costs per unit will be. What must variable costs per unit be in order for X Company to breakeven in 2016?
Summary: This question belongs to accounting and discusses about a company’s breakeven sales and to find variable costs per unit.
Total word count: 11
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