Units 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 $2.55 per pan. The variable cost per pan is as follows: Direct materials $0.26 Direct labor 0.53 Variable factory overhead 0.64 Variable selling expense 0.18 Fixed manufacturing cost totals $161,635 per year. Administrative cost (all fixed) totals $22,041. Required: 1. Compute the number of pans that must be sold for Werner to break even. x 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 Unit variable manufacturing cost $ Which is used in cost-volume-profit analysis? Unit variable cost 3. How many pans must be sold for Werner to earn operating income of $8,742? pans 4. How much sales revenue must Werner have to earn operating income of $8,742? Feedback Check My Work 1 & 2. Sum all unit variable costs. Classify each unit variable cost as manufacturing cost or period expense. Sum unit variable manufacturing costs. Consider what is needed in CVP analysis. 3 & 4. Set up break-even equation with the targeted income. Multiply units to achieve targeted income by price