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How many pans must sold for werner to earn operating income

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Reference no: EM132706307

Werner Company produces and sells disposable foil baking pans to retailers for $2.75 per pan

The variable cost per pan is as follows:

Direct Material 0.37, Direct Labor 0.6),

Variable fictory overhead 0.53 and Variable selling expense 0.12.

Fixed manufactoring costs totals $111,425 per year.

Administrative Cost (all fixed) totals $48,250.

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

Question 2. What is the unit variable cost? What is the unit variable manufactoring cost? Which is used in cost-volume-profit analysis and why?

Question 3. How many pans must be sold for Werner to earn operating income of $13,530?

Question 4. How much sales revenue must Wemer have to earn operating income of $13,530?

Reference no: EM132706307

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