Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Highlight answers Night Shades Inc. (NSi) manufactures biotech sunglasses. The variable materials cost is $24.20 per unit. a. What is the marginal cost? (Do not

Highlight answers image text in transcribed
Night Shades Inc. (NSi) manufactures biotech sunglasses. The variable materials cost is $24.20 per unit. a. What is the marginal cost? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Suppose the company incurs fixed costs of $530,000 during a year in which total production is 300,000 units. What are the total costs for the year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. If the selling price is $47.70 per unit, what is the cash break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. If depreciation is $500,000 per year, what is the accounting break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) e. What is the degree of operating leverage at the accounting break-even point? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g. 32.16.) a. Marginal cost - $ b. Total cost-$1 c. Cash break-even point units d. Accounting break-even point- units e. DOL

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Planning & Analysis And Performance Management

Authors: Jack Alexander

1st Edition

1119491487, 9781119491484

More Books

Students also viewed these Finance questions