Question
Werner Company produces and sells disposable foil baking pans to retailers for $2.45 per pan. The variable cost per pan is as follows: Direct materials
Werner Company produces and sells disposable foil baking pans to retailers for $2.45 per pan. The variable cost per pan is as follows:
Direct materials | $0.32 |
Direct labor | 0.62 |
Variable factory overhead | 0.63 |
Variable selling expense | 0.18 |
Fixed manufacturing cost totals $135,274 per year. Administrative cost (all fixed) totals $18,446
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 2 |
Unit variable manufacturing cost | $fill in the blank 3 |
Which is used in cost-volume-profit analysis?
Unit variable manufacturing costUnit variable cost
3. How many pans must be sold for Werner to earn operating income of $7,000? fill in the blank 5 pans
4. How much sales revenue must Werner have to earn operating income of $7,000? $fill in the blank 6
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