Variable material costs for a product are 543 per unit and


Variable material costs for a product are $5.43 per unit, and variable labor costs are $3.13 per unit.

a. What are total per unit variable costs? $8.56

b. If 280,000 units are produced and fixed costs are $720,000, what are total costs? Total cost = $3,116,800

c. If the price is $19.99 per unit, is the cash break-even point reached? Yes 62,992

d. If annual depreciation is $220,000, what is the accounting break-even point?

 

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Finance Basics: Variable material costs for a product are 543 per unit and
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