Reference no: EM13919780
Calculating Costs and Break-Even
Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $12.40 per unit, and the variable labor cost is $6.80 per unit.
a. What is the variable cost per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Variable cost $
b. Suppose NSI incurs fixed costs of $760,000 during a year in which total production is 330,000 units. What are the total costs for the year? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.)
Total cost $
c. If the selling price is $47.00 per unit, what is the cash break-even point? If depreciation is $560,000 per year, what is the accounting break-even point? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
Cash break-even point units
Accounting break-even point units
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Calculating costs and break-even
: Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $12.40 per unit, and the variable labor cost is $6.80 per unit. What is the variable cost per unit? Suppose NSI incurs fixed costs of $760,000 during a year in wh..
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