1. 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	$0.21
   Direct labor	0.54
   Variable factory overhead	0.62
   Variable selling expense	0.17

   Fixed manufacturing cost totals $246,766 per year. Administrative cost (all fixed) totals $33,650.

   Required:

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

   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 manufacturing cost or unit variable cost

2. 3. How many pans must be sold for Werner to earn operating income of $7,680?

   4. How much sales revenue must Werner have to earn operating income of $7,680?