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 $2.50 per pan. The variable cost per pan is as follows:

Direct materials	$0.27
Direct labor	0.58
Variable factory overhead	0.72
Variable selling expense	0.12

Fixed manufacturing cost totals $120,748 per year. Administrative cost (all fixed) totals $16,466.

Required:

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

3. How many pans must be sold for Werner to earn an operating income of $8,586?

________pans

4. How much sales revenue must Werner have to earn operating income of $8,586? _________