Compute the number of pans that must be sold for ingo

Reference no: EM13948844

Ingo Company produces and sells disposable foil baking pans to retailers for $3.20 per pan. The variable costs per pan are as follows:

Direct materials	$0.77
Direct labor	0.71
Variable overhead	0.60
Selling	0.32

Fixed manufacturing costs total $151,650 per year. Administrative costs (all fixed) total $28,350.

Required

1. Compute the number of pans that must be sold for Ingo to break even.

2. How many pans must be sold for Ingo to earn a before-tax profit of $12,600?

3. What is the unit variable cost? What is the unit variable manufacturing cost? Which is used in cost-volume-profit analysis, and why?

Reference no: EM13948844

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