Calculate Variable Cost per Unit: Accounting Break-Even Formula Example

In order to calculate the variable cost per unit, we need to use the accounting break-even formula:\n\nAccounting Break-Even = Fixed Costs / (Sales Price per Unit - Variable Cost per Unit)\n\nPlugging in the given values:\n\n24,000 units = $3600 / ($2 - Variable Cost per Unit)\n\nMultiplying both sides of the equation by ($2 - Variable Cost per Unit):\n\n24,000 units * ($2 - Variable Cost per Unit) = $3600\n\n48,000 - 24,000 * Variable Cost per Unit = $3600\n\nSubtracting $48,000 from both sides of the equation:\n\n-24,000 * Variable Cost per Unit = $3600 - $48,000\n\n-24,000 * Variable Cost per Unit = -$44,400\n\nDividing both sides of the equation by -24,000:\n\nVariable Cost per Unit = -$44,400 / -24,000\n\nVariable Cost per Unit = $1.85\n\nTherefore, the variable cost per unit must be $1.85.