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Werner Company produces and sells disposable foil baking pans to retailers for $2.75 per pan. The variable cost per pan is as follows: Direct materials
Werner Company produces and sells disposable foil baking pans to retailers for $2.75 per pan. The variable cost per pan is as follows: Direct materials Direct labor Variable factory overhead Variable selling expense Fixed manufacturing cost totals $111,425 per year.Administrative cost (all fixed) totals $48,350 Required: 1. Compute the number of pans that must be sold for Werner to break even Break-even units $0.37 0.63 0.53 0.12 145,250 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? 1.65 l,.. Unit variable cost 3. How many pans must be sold for Werner to earn operating income of $13,530? 157,550 pans 4. How much sales revenue must Werner have to earn operating income of $13,530
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