A company that manufactures electronic items sells them for $145 each. They need to sell 780 items per month to breakeven. If the fixed costs are $23,500 per month, what are the variable costs per item?

To find the variable cost per item, we can use the following formula:Variable Cost per Item = (Total…

Answered: A company that manufactures electronic…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 6MC: If a company has fixed costs of $6.000 per month and their product that sells for $200 has a...

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If a company has fixed costs of $6.000 per month and their product that sells for $200 has a contribution margin ratio of 30%, how many units must they sell in order to break even? A. 100 B. 180 C. 200 D. 2,000
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A company that manufactures electronic items sells them for $145 each. They need to sell 780 items per month to break even. If the fixed costs are $23,500 per month, what are the variable costs per item?