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Chris M., M.S.W. Social Work

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How do I solve the following Fixed costs are $20,570. At

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How do I solve the following: Fixed costs are $20,570. At the break-even point, variable costs are $1.63 per unit and the sales price is $3.50 per unit. What is the contribution margin per unit?

Fixed costs are $20,570. At the break-even point, variable costs are $1.63 per unit and the sales price is $3.50 per unit. What is the contribution margin per unit.

Contribution margin per unit = Sales price per unit - variable cost per unit

Somehow I copied and pasted the wrong question. I already knew that and am happy I figured it out the same way you did. I am sorry,

But this is the correct question. I cannot figure out how to get the selling price per unit.

At Caleb’s Tights, the break-even point is 2,000 units. If fixed costs total $300,000 and variable costs are $30 per unit, what is the selling price per unit?