What is variable cost per unit

Assignment Help Financial Management
Reference no: EM132007403

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $18.60 per unit, and variable labor cost is $7.40 per unit.

A. What is variable cost per unit?

B. Suppose NSI incurs fixed costs of $880,000 during the year in which total production is $390,000 units. What are the total cost for the year?

C. If the selling price is $50.00 per unit, what is the cash break-even point? If depreciation is $680,000 per year, what is the accounting break-even point?

Reference no: EM132007403

Questions Cloud

What is the yield on seven-year treasury note : The maturity risk premium is estimated to be 0.05 × (t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note?
Malaysia produces sarongs for the local market : Your factory in Malaysia produces sarongs for the local market. What happens to the sales in Malaysia?
Investor using covered interest arbitrage : A investor using covered interest arbitrage will earn the same return as other Country-A investors who invested in the domestic treasury.
What rate of return would she have earned for the past year : If Janet sold the bond today for $1,143.92, what rate of return would she have earned for the past year?
What is variable cost per unit : What is variable cost per unit?
How much are you willing to pay for stock : Suppose the required rate of return on the stock is 10%. How much are you willing to pay for the stock?
What is nominal yield to maturity : What is their nominal yield to maturity? What is their nominal yield to call?
How much should you be willing to pay for bond today : Bond X is noncallable and has 20 years to maturity, a 11% annual coupon, and a $1,000 par value. How much should you be willing to pay for Bond X today?
Initial cash outlay required to replace the existing fleet : What is the initial cash outlay required to replace the existing fleet with the newer tractors?

Reviews

Write a Review

Financial Management Questions & Answers

  What is this projects equivalent annual cost or eac

A five-year project has an initial fixed asset investment of $340,000, an initial NWC investment of $36,000, and an annual OCF of −$35,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required re..

  What is the yield to call if they are called in five years

Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 10% annual coupon payment, and their current price is $1,175. The bonds may be called in 5 years at 109% of face value (Call price = $1,..

  What is the yield on one year t-bonds one year from now

Today, interest rates on 1-year T-bonds yield 1.8%, interest rates on 2-year T-bonds yield 2.1%, what is the yield on 1-year T-bonds one year from now?

  Understand the concept of liquidations

Rachel has been going over her tax lecture notes and is trying to understand the concept of liquidations.

  Each of the first two years by straight-line method

Determine the depreciation for each of the first two years by the straight-line method.

  Calculate cash outflow for taxes associated with new income

Calculate the cash outflow for taxes associated with this new income. What is the net new after-tax income (change in earnings after taxes)?

  Determine net present value-decision to undertake testing

Your company has a new project to be considered. You are given the following information on the best guess of related outcomes for the project. The cost of developing and market testing the product over the next year is $225 million. Determine the ne..

  Makes no coupon payments with yield to maturity

What is the value of a 10 year bond that makes no coupon payments (0-coupon) with a yield to maturity (quoted rate) of 6.6% and a maturity value of $1000?

  Current price of a non-dividend paying stock

The current price of a non-dividend paying stock is $50. What is the option price?

  Companies perceived to be underperforming

How did a focus on stock price specifically figure into the strategy of taking over, or threatening to take over, companies perceived to be underperforming?

  How many months will it take her to repay the debt-interest

Angela owes $7,231.98. How many months will it take her to repay the debt and? interest?

  Straight-line depreciation-what is average accounting return

A project has an initial cost of $54,000 and a four-year life. The company uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $2,000, $3,900, $4,500, and $4,500 a year fo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd