Calculating costs and break-even

Assignment Help Managerial Accounting

Reference no: EM133392246

Problem 1
Calculating Costs and Break-Even [LO3] Night Shades, Inc., manufactures biotech sunglasses. The variable materials cost is $12.14 per unit, and the variable labor cost is $6.89 per unit.
a. What is the variable cost per unit?
b. Suppose the company incurs fixed costs of $845,000 during a year in which total production is 210,000 units. What are the total costs for the year?
c. If the selling price is $49.99 per unit, does the company break even on a cash basis? If depreciation is $450,000 per year, what is the accounting break-even point?

Problem 2

Calculating Returns [LOL] Suppose a stock had an initial price of $74 per share, paid a dividend of $1.65 per share during the year, and had an ending share price of $83. Compute the percentage total return.

Problem 3

Calculating Returns [LO1] Suppose you bought a bond with an annual coupon of 6 percent one year ago for $1,010. The bond sells for $1,025 today.
a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year?
b. What was your total nominal rate of return on this investment over the past year?
c. If the inflation rate last year was 3 percent, what was your total real rate of return on this investment?

Reference no: EM133392246

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