Question: The following information is available for the 24,000 units of X Companys one product sold in 2015: Selling price $49.00 Variable costs per unit $28.00
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?
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