Therapeutic Systems sells its products for $8 per unit has the follow costs:
Rent...............$120,000
Factory Labor............$1.50 per unit
Executive under contract............ $112,000
Raw material............$.70 per unit

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

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Rent is fixed cost
Labor variable
executive fixed
raw material variable
FC(rent) 120,000 divided by (P)$6-(VC)raw material .70 =
120,000 divided x = 22
5.30


This is what confuses me I am not sure what to use for variable and fixed since rent and raw material are two separate issues. Please help more!

You have correct what all is fixed and variable. And your break-even equation is correct.
(i.e. fixed costs divided by contribution margin) However, you're not including both of your variable costs, but only materials. You have two variable costs: materials and labor. Ditto the fixed. You have two of those also: rent and executive. You're trying to do the break-even based on only the rent for fixed and only material for variable. You have count all the costs in.

i.e. your variable costs are 2.20 not .70.

See what I mean?

Yes, so the final answer is
FC 232,000 232,000
P - VC, $8.00 - $2.20 = $5.80 = 40.000 units BE

Yes, it's correct. Except you need to decide if selling price is $8 or $6, since you've now used both.