Question
Werner Company produces and sells disposable foil baking pans to retailers for $3.20 per pan. The variable cost per pan is as follows: Direct materials
Werner Company produces and sells disposable foil baking pans to retailers for $3.20 per pan. The variable cost per pan is as follows: Direct materials $0.24 Direct labor 0.52 Variable factory overhead 0.65 Variable selling expense 0.17 Fixed manufacturing cost totals $312,492 per year. Administrative cost (all fixed) totals $42,612. 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 $ Unit variable manufacturing cost $ Which is used in cost-volume-profit analysis? Unit variable manufacturing cost 3. How many pans must be sold for Werner to earn operating income of $16,362? pans 4. How much sales revenue must Werner have to earn operating income of $16,362?
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