Bobs Bikes Inc. (BBI) manufactures biotech sunglasses. The variable materials cost is $.74 per unit and the
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Bob’s Bikes Inc. (BBI) manufactures biotech sunglasses. The variable materials cost is $.74 per unit and the variable labor 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 production 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? If depreciation is $150,000 per year, what is the accounting break-even point?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780072553079
6th Edition
Authors: Stephen A. Ross, Randolph Westerfield, Bradford D. Jordan
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