Sufra Corporation is planning to sell 100,000 units for $8.00 per unit and will break even at this level of sales.Fixed expenses will be $300,000.What are the company's variable expenses per unit?

A) $5.00
B) $4.00
C) $3.00
D) $4.50

Variable Expenses

Costs that change in proportion to the activity of a business, such as raw materials and direct labor costs.

Fixed Expenses

Costs that do not change with the level of production or sales over a short period, such as rent or salaries.

Break Even

A financial situation where total costs equal total revenues, resulting in no net profit or loss.