Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $5.43 per unit, and the variable labor cost is $3.13 per unit. (i) What is the variable cost per unit? (ii) Suppose NSI incurs fixed costs of $720,000 during a year in which total production is 280,000 units. What are the total costs for the year?

In each of the following cases, find the unknown variable:

No	Break-Even Point in Unit	Unit Price	Unit Variable Cost	Fixed Cost
1	$165,000	?	$43	$4,350,000
2	$4385	$98	?	$265,000
3	?	$11	$4	$2,040
4	$112,800	$41	$30	?

i. Buy Coastal, Inc., imposes a payback cutoff of three years for its international investment projects. If the

company has the following two projects available, should it accept either of them?

Year	Cash Flow (A)	Cash Flow (B)
0	-$40,000	-$60,000
1	19,000	14,000
2	25,000	17,000
3	18,000	24,000
4	6,000	270,000

ii. An investment project provides cash inflows of $765 per year for eight years. What is the project payback period if the initial cost is $2,400? What if the initial cost is $3,600? What if it is $6,500?