View the step-by-step solution to:

Is there a way to calculate unit variable expense with this given information: Jupiter Game Company manufactures pocket electronic games. Last year...

Is there a way to calculate unit variable expense with this given information: Jupiter Game Company manufactures pocket electronic games. Last year Jupiter sold 25,000 games at $25 each. Total costs amounted to $525,000, of which $150,000 were considered fixed.


if not how do I calculate how many units need to be sold to make $140,000. the formula that I am trying to use is [unit sales price x sales volume in units] - [unit variable expense x sales volume in units] - fixed expenses = $140,000. Therefore [$25 x units] - [unit variable expense x units] - $150,000 = $140,000.

Top Answer

The number of units... View the full answer

5 comments
  • If the variable cost is $15 and I calculated the contribution of each unit towards covering fixed cost as $10, does variable cost include profit dollars? This is how I got the contribution: 1a. 25,000 x $25 = $625,000 sales revenue. $625,000 - $375,000 (variable costs) = $250,000 total contribution margin. $250,000 / 25,000 = $10 Contribution per unit. b. Breakeven point = Fixed Expenses / contribution of each unit toward covering fixed cost. $150,000 / $10 = 15,000 unit break even point.
    • seaninnd
    • Aug 08, 2018 at 8:48am
  • Your contribution margin per unit is correct, which is $10. You can calculate it also like this: Contribution margin per unit = Selling price per unit - Variable costs per unit = 25 - 15 = 10
    • dinamarcanete
    • Aug 08, 2018 at 8:52am
  • Yes, the breakeven point is 15,000 units
    • dinamarcanete
    • Aug 08, 2018 at 8:52am
  • Thanks for your help!
    • seaninnd
    • Aug 08, 2018 at 9:44am
  • You're welcome.
    • dinamarcanete
    • Aug 08, 2018 at 12:54pm

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask a homework question - tutors are online