Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $18.20 per unit,...
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Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $18.20 per unit, and the variable labor cost is $5.80 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 $560,000 during a year in which total production is 230,000 units. What are the total costs for the year? Total cost c. If the selling price is $42.00 per unit, what is the cash break-even point? If depreciation is $360,000 per year, what is the accounting break-even point? (Round your answers to 2 decimal places. (e.g., 32.16)) Cash break-even point Break-even point units units Olin Transmissions, Inc., has the following estimates for its new gear assembly project: price = $1,600 per unit; variable costs = $320 per unit; fixed costs = $2.7 million; quantity = 78,000 units. Suppose the company believes all of its estimates are accurate only to within 10 percent. What values should the company use for the four variables given here when it performs its best-case scenario analysis? What about the worst-case scenario? Units Sales Unit Price Unit Variable cost Fixed Costs Scenario Base Best Worst
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