Calculating costs and break-even

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Reference no: EM131180646

Calculating Costs and Break- Even.

Night Shades, Inc. ( NSI), manufactures biotech sunglasses. The variable materials cost is $ 10.48 per unit, and the variable labor cost is $ 6.89 per unit.

a. What is the variable cost per unit?

b. Suppose NSI incurs fixed costs of $ 870,000 during a year in which total production is 280,000 units. What are the total costs for the year?

c. If the selling price is $ 49.99 per unit, does NSI break even on a cash basis? If depreciation is $ 490,000 per year, what is the accounting break- even point?

Reference no: EM131180646

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