Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income

Prachi Company produces and sells disposable foil baking pans to retailers for $2.20 per pan. The variable cost per pan is as follows:

Direct materials	$0.28
Direct labor	0.51
Variable factory overhead	0.65
Variable selling expense	0.16

Fixed manufacturing cost totals $142,560 per year. Administrative cost (all fixed) totals $19,440.

Required:

1. Compute the number of pans that must be sold for Prachi 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 2
Unit variable manufacturing cost	$fill in the blank 3

Which is used in cost-volume-profit analysis?

Unit variable manufacturing costUnit variable costUnit variable cost

3. How many units must be sold for Prachi to earn operating income of $4,440? fill in the blank 5 pans

4. How much sales revenue must Prachi have to earn operating income of $4,440? $fill in the blank 6