Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $16.00 per unit, and the variable labor cost is $7.30 per unit. a.What is the variable cost per unit? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)b.Suppose the company incurs fixed costs of $860,000 during a year in which total production is 380,000 units. What are the total costs for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)c.If the selling price is $49.50 per unit, what is the cash break-even point? If depreciation is $660,000 per year, what is the accounting break-even point? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

a) Calculate the variable cost as shown below

Answered: Night Shades Inc. (NSI) manufactures…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 7PB: Abilene Industries manufactures and sells three products (XX, W, and ZZ). The sales price and unit...

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Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $16.00 per unit, and the variable labor cost is $7.30 per unit.

a.	What is the variable cost per unit? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.	Suppose the company incurs fixed costs of $860,000 during a year in which total production is 380,000 units. What are the total costs for the year? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)
c.	If the selling price is $49.50 per unit, what is the cash break-even point? If depreciation is $660,000 per year, what is the accounting break-even point? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

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