Solved: Expenses between fixed and variable cost per unit, Accounting Basics

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Expenses between fixed and variable cost per unit

Problem:

Air Filter, Inc., sells its products for $6 per unit. It has the following costs:

Rent                       $100,000
Factory labor           $1.20 per unit
Executive salaries    $89,000
Raw material           $.60 per unit

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

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Accounting Basics: Expenses between fixed and variable cost per unit

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