Question

Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $10.48 per unit, and the variable labor cost is $6.89 per unit.
a. What is the variable cost per unit?
b. Suppose NSI incurs fixed costs of $870,000 during a year in which total production is 280,000 units. What are the total costs for the year?
c. If the selling price is $49.99 per unit, does NSI break even on a cash basis? If depreciation is $490,000 per year, what is the accounting break-even point?



$1.99
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  • CreatedMarch 13, 2014
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