Question regarding the cash break-even point


Problem:

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $10.48 per unit, and the variable labor cost is $6.89 per unit.

Required:

Question 1: If the selling price is $49.99 per unit, what is the cash break-even point?

Question 2: If depreciation is $490,000 per year, what is the accounting break-even point?

Note: Show supporting computations in good form.

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Accounting Basics: Question regarding the cash break-even point
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