Cash break-even point unit-accounting break-even point units

Assignment Help Financial Management
Reference no: EM131324521

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $15.60 per unit, and the variable labor cost is $5.70 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 $540,000 during a year in which total production is 220,000 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 $41.50 per unit, what is the cash break-even point? If depreciation is $340,000 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: EM131324521

Questions Cloud

How much would you expect the price to change : Assuming that only the domestic supply curve shifted, how much would you expect the price to change? (Hint: See the discussion of price flexibility in the application "The Big Freeze.")
What are the danger of not cross checking between the models : What are the dangers of not cross checking between the models? What is the principal distinction (purpose) between a use case activity diagram and a system sequence diagram?
How slavery had a dehumanizing effect on the perpetrator : Need to be done from the book called " A narrative of the life frederick douglas" Subject: how slavery had a dehumanizing effect on the perpetrator (slave owner) as well as the victim (slave) of such a crime against humanity
Implications of the prolific use of genetic knowledge : Question: Describe how the use of genetic knowledge can change the course of disease. What are the implications of the prolific use of genetic knowledge for the intervention of disease? Should there be any limitations to the use of genetic knowled..
Cash break-even point unit-accounting break-even point units : Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $15.60 per unit, and the variable labor cost is $5.70 per unit. What is the variable cost per unit?  If the selling price is $41.50 per unit, what is the cash bre..
Discuss the company presidents actions : Discuss Ed Gray's actions - Discuss Mike Cane's actions and discuss the company president's actions.
Illustrate these events using a graph : On the other hand, the price of inexpensive watches has not changed substantially. What can you conclude about the shape of the supply curve? Illustrate these events using a graph.
Interested in plant life history evolution : You are interested in plant life history evolution, You come across a population of the California poppy that i spolymorphic (mixed) for both iteroparous ans semeparous individuals.
Which group do you agree with : Which group do you agree with? Do you feel that there is a better way to record these transactions - Give details that support your choice.

Reviews

Write a Review

Financial Management Questions & Answers

  What is your profit? from these transactions

Last year you sold short 400 shares of stock selling at ?$74.39 per share. Six months later the stock had fallen to ?$38.62 per share. Over the? six-month period the company paid out two dividends of ?$2.05 per share. Your total commission cost for s..

  Advantages and disadvantages of investing in stock market

It is commonly assumed that the stock market yields a 10% rate or return on average on investments made in the market long term. Essay looking at the advantages and disadvantages of investing in the stock market long term.

  What is the current share price-growth rate in dividends

Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $15, $10, $5, $2.20. Afterwards, the company pledges to maintain a constant 4% growth rate in dividends forever. If the required return on the stock is 10%..

  An all equity firm generates cash flows

An all equity firm generates cash flows (CFFA) of $100 million every year in perpetuity. Based on the risk of the cash flows, a discount rate of 20% is appropriate for the firm. The firm is considering a project that will require an investment of $75..

  The forward curve will also be flat

If the spot yield curve is flat, that is, the rate for all maturities are the same, does it mean that the Forward curve will also be flat? Explain the reason for your answer.

  Preparing to make monthly payments

You are preparing to make monthly payments of $75, beginning at the end of this month, into an account that pays 6 percent interest compounded monthly. How many payments will you have made when your account balance reaches $10,000?

  What is the dollar value of the deutsche mark

Does the American company enter the forward market to go long or short of forward DM? - What is the number of DM/$? What is the dollar value of the deutsche mark?

  What is the maximum capital budget-expected net income

ABC telecom in is expected to generate $240 million in net income over the next year. ABC Telecom INC stockholders expect it to maintain its long run dividend payout ratio of 40% earnings. If the company wants to maintain its current capital structur..

  Fixed-rate mortgage to buy a new home

You need a 25-year, fixed-rate mortgage to buy a new home for $255,000. Your mortgage bank will lend you the money at a 5.50 percent APR for this 300-month loan. However, you can afford monthly payments of only $950, so you offer to pay off any remai..

  Fund assuming that only the interest income is distributed

George Jefferson established a trust fund that provides $178,500 in scholarships each year for worthy students. The trust fund earns a 5 percent rate of return. How much money did Mr. Jefferson contribute to the fund assuming that only the interest i..

  Expected loss over the next year with a probability

A stock has an annual return of 11 percent and a standard deviation of 44 percent. What is the smallest expected loss over the next year with a probability of 1 percent?

  Determine the degree of operating leverage

Determine the degree of operating leverage for a firm that has the percentage change in sales equal to 35% and the percentage change in operating income is 46%.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd