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Dane Company has a break-even point of 120,000 units. If the firm's sole product sells for $40 and fixed costs total $480,000, the variable cost per unit must be:

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Based on the breakeven point and the selling price of the product, the variable cost per unit is $36

What is the variable cost per unit?

First, find the contribution margin:

Breakeven = Fixed costs / Contribution margin

120,000 = 480,000 / Contribution margin

Contribution margin = $4

The variable costs are:

= Selling price - contribution

= 40 - 4

= $36

Find out more on the breakeven point at https://brainly.com/question/9212451

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