Problem:
Cool Shades, Inc. (CSI) manufactures biotech sunglasses. The variable materials cost is $1.69 per unit, and the variable labor cost is $3.04 per unit. Suppose the firm incurs fixed costs of $750,000 during a year in which total production is 450,000 units and the selling price is $11.50 per unit.
Required:
Question 1: What is the cash break-even point?
A. 76,453 units
B. 88,652 units
C. 110,783 units
D. 128,907 units
E. 140,768 units
Note: Please show guided help with steps and answer.