(Solution) - Calculating Costs and Break Even Night Shades inc NSI manufac -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Pages: 5 Words: 1375

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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?