skip to Main Content
The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

Calculating Costs and Break-Even Night Shades inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $4.68 per unit, and the. Variable labor cost is $2.27 per unit.a. What is the variable cost per unit?b. Suppose NSI incurs fixed costs of $650,000 during a year in which total production is 320,000 units. What are the total costs for the year?c. If the selling price is $11.99 per unit, does NSI break even on a cash basis? If depreciation is $190,000 per year, what is the accounting break-even point?
Answer A Variable Costs Material Cost $ 4.68 Labor Cost $ 2.27 Variable Costs per unit $ 6.95 Answer B Fixed Costs $ 650,000 Variable Costs $ 2,224,000 (320,000 units * $ 6.95 per unit) Total Costs $ 2,874,000 Answer C Selling price per unit $ 11.99 less: Variable Costs per unit $ 6.95 Contribution Margin per unit $ 5.04 Cash Break even = Fixed Costs less Non Cash expenses…

/ Contibution per unit Cash Break even = 650,000 less 190,000 / 5.04 Cash Break even = 91,270 units Accounting Break even point = Fixed Costs/Contribution per unit Accounting Break even point = 650,000/5.04 Accounting Break even point = 128,968 units


Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®