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ABC Inc. Manufactures biotech sunglasses. The variable materials cost $1.43 per unit and the variable...

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Finance

ABC Inc. Manufactures biotech sunglasses. The variable materials cost $1.43 per unit and the variable labour cost is $2.44 per unit.

  1. What is the variable cost per unit? ($3.87)
  2. Suppose the firm 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? ($1,888,400)
  3. If the selling price is $10 per unit, what is the cash break-even point? If depreciation is $190,000 per year, what is the accounting break-even point? (106,036 units; 137,031 units)

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