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Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $1.83 per unit, and the variable labor cost is $3.84 per unit.
Requirement 1:
What is the variable cost per unit? (Do not round your intermediate calculations.)
Requirement 2:
Suppose NSI incurs fixed costs of $670,000 during a year in which total production is 368,500 units. What are the total costs for the year? (Do not round your intermediate calculations.)
Requirement 3:
(a) If the selling price is $9.95 per unit, what is the NSI break-even on a cash basis? (Do not round your intermediate calculations.)
(b) If depreciation is $165,825 per year, what is the accounting break-even point? (Do not round your intermediate calculations.)
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