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Does the company break even on a cash basis

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Problem 1: Night Shades Inc. manufactures biotech sunglasses. The variable materials cost is $5.43 per unit, and the variable labor cost is $3.13 per unit. The company needs to spend fixed costs of $720,000 during a year in which total production is 280,000 units. The selling price is $19.99 per unit and the depreciation for the fixed asset is $220,000 per year. What is the variable cost per unit? What are the total costs for the year? Does the company break even on a cash basis? What is the accounting break-even point?

Reference no: EM132718432

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