Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income

Werner Company produces and sells disposable foil baking pans to retailers for $$2\mathrm{.}20$ per pan. The variable cost per pan is as follows:

Direct materials $$0\mathrm{.}23$

Direct labor $0\mathrm{.}51$

Variable factory overhead $0\mathrm{.}73$

Variable selling expense $0\mathrm{.}13$Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income

Werner Company produces and sells disposable foil baking pans to retailers for $$2\mathrm{.}20$ per pan. The variable cost per pan is as follows:

Direct materials

Direct labor

Variable factory overhead

Variable selling expense

$$0\mathrm{.}23$

$0\mathrm{.}51$

$0\mathrm{.}73$

$0\mathrm{.}13$

Fixed manufacturing cost totals $$104,438$ per year. Administrative cost $($all fixed$)$ totals $$14,242.$

Required:

Compute the number of pans that must be sold for Werner to break even.

pans

Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent.

Unit variable cost

$

Unit variable manufacturing cost

$

Which is used in cost$-$volume$-$profit analysis?

Unit variable cost

How many pans must be sold for Werner to earn operating income of $$6,840?$

pans

How much sales revenue must Werner have to earn operating income of $$6,840?$

$

Check My Work

$3$ & $4.$ Set up break$-$even equation with the targeted income.

Multiply units to achieve targeted income by price.