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Problem 4-50 Using the Break-Even Equations to Solve for Price and Variable Cost per Unit

Solve the following independent problems.

Required:

• 1.Andromeda Companys break-even point is 2,400 units. Variable cost per unit is $42; total fixed costs are $67,200 per year. What price does Andromeda charge?
• 2.Immelt Company charges a price of $6.50; total fixed cost is $314,400 per year, and the break-even point is 131,000 units. What is the variable cost per unit?

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