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Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.89 per unit, and the variable labor cost is $3.4 per unit. a.
Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.89 per unit, and the variable labor cost is $3.4 per unit.
a. What is the variable cost per unit?
b. Suppose the company incurs fixed costs of $790,000 during a year in which total production is 355,500 units. What are the total costs for the year?
c. If the selling price is $10.2 per unit, what is the NSI break-even on a cash basis?
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