Thunder Bay Inc. manufactures biotech sunglasses. The variable material cost is $10.48 per unit and the variable labour cost is $6.89 per unit.

What is the variable cost per unit? Suppose TBI incurs fixed cost of $870 000 during the year in which total production is 280 000 units . What are the total costs per year? If the selling price is $49.99 per unit, does TBI break even on a cash basis? If depreciation is $490 000 per year, what is the accounting break -even point?