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Night Shade Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $9.64 per unit, and the variable labor cost is $8.63 per unit.
a) What is the variable cost per unit?
b) Suppose NSI incurs fixed costs of $915,000 during a year in which total production is $215,000 units. What are the total costs for the year?
c) If the selling price is $39.99 per unit, does NSI break even on a cash basis? If depreciation is $465,000 per year, what is the accounting break-even point?
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