Units Sold to Break Even, Unit Variable Cost, Unit Manufacturing Cost, Units to Earn Target Income
Werner Company produces and sells disposable foil baking pans to retailers for $2.75 per pan. The variable cost per pan is as follows:
Fixed manufacturing cost totals $111,425 per year. Administrative cost (all fixed) totals $48,350.
1. Compute the number of pans that must be sold for Werner to break even.
2. Conceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent.
|Unit variable cost||$|
|Unit variable manufacturing cost||$|
Which is used in cost-volume-profit analysis?
SelectUnit variable manufacturing costUnit variable costItem 4
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3. How many pans must be sold for Werner to earn operating income of $13,530?
4. How much sales revenue must Werner have to earn operating income of $13,530? (Round your answer to the nearest cent.)
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