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Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.98 per unit, and the variable labor cost is $3.76 per unit. a.
Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.98 per unit, and the variable labor cost is $3.76 per unit.
a.What is the variable cost per unit?
b.Suppose the company incurs fixed costs of $400,000 during a year in which total production is 160,000 units. What are the total costs for the year?
c.If the selling price is $9.7 per unit, what is the NSI break-even on a cash basis?
d.If depreciation is $104,000 per year, what is the accounting break-even point?
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