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 $2.30 per pan. The variable cost per pan is as follows:

Direct materials	$0.25
Direct labor	0.52
Variable factory overhead	0.62
Variable selling expense	0.17

Fixed manufacturing cost totals $174,261 per year. Administrative cost (all fixed) totals $23,763.

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
Unit variable manufacturing cost	$fill in the blank

Which is used in cost-volume-profit analysis?

3. How many pans must be sold for Werner to earn operating income of $8,066? fill in the blank

4. How much sales revenue must Werner have to earn operating income of $8,066? $fill in the blank