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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?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92845051

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