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What is the variable cost of a product if the fixed costs associated with it total $6,000, the break even point is 300 units, and selling price is $45?
Suggested Answer: D
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41 comments · newest first
JE
Jesus
11 months ago
Just did the math, and yeah, $25 is right!
JA
Jacquelyne
11 months ago
I thought it would be higher, like $34.
SE
Serina
11 months ago
Wait, how did you get that?
MA
Marquetta
11 months ago
Totally agree, $25 makes sense!
IV
Ivory
12 months ago
The variable cost is $25.
CA
Catalina
12 months ago
If I recall correctly, the formula should help us find the variable cost per unit, but I can't remember the exact steps. I hope I can figure it out during the exam!
AS
Ashton
12 months ago
I’m a bit confused about the selling price and how it factors into the variable cost. I feel like I might be overthinking it.
DE
Deangelo
1 year ago
I remember a similar question where we had to find variable costs using fixed costs and selling price. I think we might need to subtract fixed costs from total revenue at break-even.
KI
King
1 year ago
I think the variable cost is calculated by using the break-even point and fixed costs, but I'm not entirely sure how to set it up.
NI
Nichelle
1 year ago
I got this! The answer has to be A. The question is specifically asking how to determine what consumables the end user has consumed, and that option mentions going to the "My Consumables" section.
MA
Maurine
1 year ago
Hmm, the routing black hole statement is interesting. I'll need to think through the implications of the configured routes and default route to determine if that's correct.
MA
Matt
1 year ago
I'm a bit unsure about the USB device name. Is it usb1, usb, or usb0? I'll have to think this through carefully.
DO
Dong
1 year ago
This is easy peasy, just plug and chug. Option B is the way to go, no doubt about it.
SC
Scarlet
1 year ago
Great, let's go with option B then.
VE
Vesta
1 year ago
Yeah, I agree. It's definitely $25.
RO
Robt
1 year ago
I think it's option B, $25.
LA
Laticia
1 year ago
I bet the answer is hidden in a complex formula somewhere. Time to bust out the calculator!
OL
Olive
1 year ago
D? Really? That's way off. I'm going with A, that makes the most sense.
KY
Kyoko
1 year ago
I'm going with A too, $17 seems right.
CA
Cary
1 year ago
I'm pretty sure it's A, $17.
ST
Stephaine
1 year ago
No, I believe it's C, $29.
CH
Chana
1 year ago
I think it's B, $25.
MA
Mari
1 year ago
I'm not sure, but I think it might be E, $41.
NA
Nathalie
1 year ago
I'm going with A, $17.
TH
Theodora
1 year ago
No, I'm pretty sure it's C, $29.
JE
Jesusa
1 year ago
I think it's B, $25.
WI
William
1 year ago
But if you calculate the variable cost using the formula (Selling Price - Fixed Costs) / Break Even Point, you will get $17.
GE
Georgene
1 year ago
Wait, is this a trick question? I'm going to double-check my work.
TA
Tammy
1 year ago
I got $17 as well. Let's compare our calculations.
MA
Marion
1 year ago
I think the answer is $17.
MA
Marisha
1 year ago
I disagree, I believe the answer is D) $34.
WI
William
1 year ago
I think the answer is A) $17.
BR
Brittney
2 years ago
Aha! I think the answer is C. The math checks out.
JE
Jeannetta
1 year ago
That makes sense, thanks for the clarification.
AD
Adell
1 year ago
So, the variable cost would be $29.
VE
Venita
1 year ago
I agree, the math does check out.
LI
Linette
1 year ago
I think the answer is C.
LE
Levi
2 years ago
Option B seems too high, I think the variable cost is lower than that.
KA
Kami
2 years ago
I'm not sure, but I think it's $25 too.
BA
Barrett
2 years ago
I believe it's $29 because the break even point is 300 units.
SA
Salome
2 years ago
I think the answer is $25.