Cash break-even point and accounting break-even point

Assignment Help Financial Management

Reference no: EM132029427

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $15.90 per unit, and the variable labor cost is $6.90 per unit.

a. What is the variable cost per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Variable cost $

b. Suppose NSI incurs fixed costs of $780,000 during a year in which total production is 340,000 units. What are the total costs for the year? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.)

Total cost $

c. If the selling price is $47.50 per unit, what is the cash break-even point? If depreciation is $580,000 per year, what is the accounting break-even point? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

Cash break-even point units

Accounting break-even point units

Reference no: EM132029427

Questions Cloud

Pair of mortgage loan options : Consider the following pair of mortgage loan options for a $115,000 mortgage. Which mortgage loan has the larger total cost

Difference in the mean scores between the girls and boys : You discovered that there was a difference in the mean scores between the girls and boys.

What is forecast for paymore cash receipts in each quarter : What is the forecast for Paymore's cash receipts in each quarter of the coming year?

Binomial distribution with parameters : X be the number of heads. That is, X follows the binomial distribution with parameters n = 2, p=0.4.

Cash break-even point and accounting break-even point : What is the variable cost per unit? what is the accounting break-even point? what is the cash break-even point?

What is the probability that the mean height : What is the probability that the mean height for the sample is greater than 65 ?inches? Assume standard deviation is 2.94.

Determine which product would be the best choice : Determine which product would be the best choice and explain why. Remember cheaper is not always better.

Berndt investigate the output of advertising agencies : In an article in Marketing Science, Silk and Berndt investigate the output of advertising agencies. They describe ad agency output

Explain the general expectations and requirements : Explain the general expectations and requirements for the Discounted Cash Flow Model Valuation Assignment that is to be prepared.

User Account

All Pages