Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable

QUESTION

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $5.43 per unit, and the variable labor cost is $3.13 per unit.a. What is the variable cost per unit?b. Suppose NSI incurs fixed costs of $720,000 during a year in which total production is 280,000 units. What are
a. Variable cost per unit = Variable material cost variable labour cost Variable cost per unit = $5.43 $3.13 = $8.56 b. Total cost = fixed cost Variable cost Total cost = $720,000 $8.56 * 280,000 = $3,116,800 c. Cash Break even Point = (Total Fixed Expenses depreciation

tribution margin per unit ($720,000 $220,000) / $19.99 $8.56 = 43,744.5 Break even point = total fixed expenses/contribution margin per unit = $720,000/$19.99 $8.56 BEP = 62,992.12

ANSWER:

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