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