Bob’s Bikes Inc. (BBI) manufacturesbiotech sunglasses. The variable materials cost is $.74 per unit and the variablelabor cost is $2.61 per unit.a.What is the variable cost per unit?b.Suppose BBI incurs fixed costs of $610,000 during a year in which total pro-duction is 300,000 units. What are the total costs for the year?c.If the selling price is $7.00 per unit, does BBI break even on a cash basis? Ifdepreciation is $150,000 per year, what is the accounting break-even point?

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variable material costs 074 variable labour costs 261 variable c... View the full answer