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    kel2978's Avatar
    kel2978 Posts: 1, Reputation: 1
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    #1

    Mar 8, 2013, 10:52 AM
    Help with Managerial Accounting Homework
    If the selling price per unit is $25, the variable expense per unit is $6.25, and the breakeven sales in dollars is $465,200, what are total fixed expenses?
    Fidget1's Avatar
    Fidget1 Posts: 105, Reputation: 4
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    #2

    Mar 9, 2013, 07:26 AM
    You know what the total sales to break-even are, and you know what the selling price per unit is, so you can easily work out how many units need to be sold to break-even.

    You also know what the variable cost is per unit, so you can tell how much the total variable costs are as well once you've worked out how many units have been sold.

    Then all you have to do is deduct the total variable costs from the total sales and that's your figure for total fixed costs.
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