Question: Night Shades Inc NSI manufactures biotech sunglasses The variable materials

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?


View Solution:


Sale on SolutionInn
Sales0
Views394
Comments
  • CreatedMarch 13, 2014
  • Files Included
Post your question
5000