What is the accounting break-even point

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Reference no: EM13951793

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable material cost is $1.15 per unit, and the variable labor cost is $2.07 per unit.

Requirement 1: What is the variable cost per unit? (Do not round your intermediate calculations.)

Requirement 2: Suppose NSI incurs fixed costs of $670,000 during a year in which total production is 301,500 units. What are the total costs for the year? (Do not round your intermediate calculations.)

Requirement 3: (a) If the selling price is $8.5 per unit, what is the NSI break-even on a cash flow basis (in units)? (The level of sales in units at which the cash flow is zero). (Do not round your intermediate calculations.)

(b) If depreciation is $135,675 per year, what is the accounting break-even point (in units)? (Do not round your intermediate calculations.)

Reference no: EM13951793

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