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Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.49 per unit, and the variable labor cost is $2.98 per unit. a.
| Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.49 per unit, and the variable labor cost is $2.98 per unit. |
| a. What is the variable cost per unit? |
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| b. Suppose the company incurs fixed costs of $590,000 during a year in which total production is 295,000 units. What are the total costs for the year? |
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| c. If the selling price is $9.05 per unit, what is the NSI break-even on a cash basis? |
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| d. If depreciation is $191,750 per year, what is the accounting break-even point? |
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