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nits Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income Werner Company produces and sells disposable foil baking pans

nits Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income

Werner Company produces and sells disposable foil baking pans to retailers for $3.05 per pan. The variable cost per pan is as follows:

Direct materials $0.25
Direct labor 0.53
Variable factory overhead 0.72
Variable selling expense 0.15

Fixed manufacturing cost totals $271,533 per year. Administrative cost (all fixed) totals $37,027.

Required:

1. Compute the number of pans that must be sold for Werner to break even. fill in the blank 1 pans

2. Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent.

Unit variable cost $fill in the blank 2
Unit variable manufacturing cost $fill in the blank 3

Which is used in cost-volume-profit analysis?

Unit variable manufacturing costUnit variable cost

3. How many pans must be sold for Werner to earn operating income of $9,800? fill in the blank 5 pans

4. How much sales revenue must Werner have to earn operating income of $9,800?

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