fixed and variable costs per unit
Not what you're looking for?
Therapeutic Systems sells its products for $8 per unit. It has the following costs:
Fixed: Rent $ 120,000
Variable: Factory labor $ 1.50 per unit
Fixed: Executive salaries $ 112,000
Variable: Raw materials $ 0.70 per unit
Separate the expenses between fixed and variable costs per unit (I have separated the expenses into their classifications, but I need information about the "per unit" calculations). Using this information and the sales price per unit of $6, compute the break-even point
Purchase this Solution
Solution Summary
This solution provides a detailed, step by step explanation of the given economics question.
Solution Preview
It's unclear if the price is $8 per unit or $6. Because at the beginning, you said "Therapeutic Systems sells its products for $8 per unit", ...
Purchase this Solution
Free BrainMass Quizzes
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.