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# 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.

The number of units... View the full answer

• 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
• seaninnd
• Aug 08, 2018 at 9:44am
• You're welcome.
• dinamarcanete
• Aug 08, 2018 at 12:54pm

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