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

Belham Company produces and sells disposable foil baking pans to retailers for $3.05 per pan. The variable cost per pan is as follows:

Line Item Description	Cost
Direct materials	$0.33
Direct labor	0.56
Variable factory overhead	0.62
Variable selling expense	0.13

Fixed manufacturing cost totals $314,667 per year. Administrative cost (all fixed) totals $42,909.

Required:

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

Line Item Description	Answer
Break-even units	fill in the blank 1 pans

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

Line Item Description	Cost
Unit variable cost	$fill in the blank 2
Unit variable manufacturing cost	$fill in the blank 3

Which is used in cost-volume-profit analysis?

3. How many pans must be sold for Belham to earn operating income of $15,933? fill in the blank

4. How much sales revenue must Belham have to earn operating income of $15,933? fill in the blank