1. Calculating Costs and Break-Even night Shades Inc. manufactures biotech sunglasses. The variable material 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 NIS incurs fixed costs of $720,000 during a year in which total production is 280,000 units. What are the totals costs for a year?
c. If the selling price is $19.99 per unit, does NSI break even on a cash basis? Of depreciation is $220,000 per year, what is the accounting break-even point?