Please show steps, thank you. #1-4

7:451 hw3.docx FIN 3320-HW3 (DUE Time: April 6, 2018) Each question is worth 10 points. For question 01-019 Please write down your steps to receive partial credits in case your final answer is incorrect 1. Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $9.64 per unit, and the variable labor cost is $8.63 per unit. a. What is the variable cost per unit? b. Suppose NSI incurs fixed costs of $915,000 during a year in which total production is 215,000 units. What are the total costs for the year? c. If the selling price is $39.99 per unit, does NSI break even on a cash basis? If depreciation is $465,000 per year, what is the accounting break-even point? 2. In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. Unit Price Unit Variable Cost Fined Costs Depreciation $2,980 $2,135 $9,000,000 $3,100,000 135,000 1,900 183,000 3. A project has the following estimated data: price $54 per unit; variable costs $36 per unit; fixed costs- S19,300; required return - 12 percent; initial investment- S26,800; life four years. Ignoring the effect of taxes, what is the accounting break-even quantity? The cash break-even quantity? The financial break-even quantity? What is the degree of operating leverage at the financial break-even level of output? 4. At an output level of 53,000 units, you calculate that the degree of operating leverage is 3.21. If output rises to 57,000 units, what will the percentage change in operating cash flow be? Will the new level of operating leverage be higher or lower? Explain. Open With Print