Thunder Bay Inc. (TBI) manufactures biotech sunglasses. The variable materials cost is $10.48 per unit, and the variable labour cost is $6.89 per unit.

a. What is the variable cost per unit?

b. Suppose TBI 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 TBI break even on a cash basis? If depreciation is $490,000 per year, what is the accounting break-even point?