Solved: Expenses between fixed and variable costs per unit, Finance Basics

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Expenses between fixed and variable costs per unit

Question:

Therapeutic Systems sells its products for $8 per unit. It has the following costs:

Rent                       $120,000
Factory labor           $1.50 per unit
Executive salaries    $112,000
Raw material    $.70 per unit

Separate the expenses between fixed and variable costs per unit. Using this information and the sales price per unit of $6, compute the break-even point.

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Finance Basics: Expenses between fixed and variable costs per unit

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