Calculation of Variable Costs Per Unit be in Order to Breakeven  

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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