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Werner Company produces and sells disposable foil baking pans to retailers for $2.75 per pan. The variable cost per pan is as follows: Direct materials $0.23 Direct labor 0.57 Variable factory overhead 0.73 Variable selling expense 0.14 Fixed manufacturing cost totals $207,092 per year. Administrative cost (all fixed) totals $28,240. Required: 1. Compute the number of pans that must be sold for Werner to break even pans 2. Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent. Unit variable cost Unit variable manufacturing cost Which is used in cost-volume-profit analysis? 3. How many pans must be sold for Werner to earn operating income of $12,528? pans 4. How much sales revenue must Werner have to earn operating Income of $12,528? Margin of Safety Chillmax Company plans to sell 3,500 pairs of shoes at $50 each in the coming year. Unit variable cost is $21 (includes direct materials, direct labor, variable factory overhead, and variable selling expense) Total fixed cost equals $78,000 (includes fixed factory overhead and fixed seling and administrative expense). Break-even units equal 2,000. Required: 1. Calculate the margin of safety in terms of the number of units. units 2. Calculate the margin of safety in terms of sales revenue

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