PLEASE ROUND ANSWERS TO 2 DECIMALS OR 3, DEPENDING IN THE INSTRUCTION! THANK YOU

Question

PLEASE ROUND ANSWERS TO 2 DECIMALS OR 3, DEPENDING IN THE INSTRUCTION! THANK YOU IN ADVANCE!

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $15.80 per unit, and the variable labor cost is $6.50 per unit. a. What is the variable cost per unit? (Round your answer to 2 decimal places. (e.g., 32.16)) Variable cost $ b. Suppose NSI incurs fixed costs of $700,000 during a year in which total production is 300,000 units. What are the total costs for the year? Total cost $ c. If the selling price is $45.50 per unit, what is the cash break-even point? If depreciation is $500,000 per year, what is the accounting break-even point? (Round your answers to 2 decimal places. (e.g., 32.16)) Cash break-even point units ?Break-even point units?

Explanation / Answer

a) Variable costs per unit $                22.30 15.8+6.5 b) Total costs $ 7,390,000.00 300000*22.3+700000 c) Contribution per unit $                23.20 45.5-22.3 Contribution ratio 50.99% 23.2/45.5 Cash breakeven point $ 1,372,818.20 700000/50.99% Accounting breakeven point $ 2,353,402.63 (700000+500000)/50.99%

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