Log in
Finance
1
answer
0
watching
193
views

Night Shades Inc. (NSI) manufactures biotech sunglasses.The variable materials cost is $10.00 per unit, and the variablelabor cost is $5.50 per unit.

Varible Cost: 15.50

Total Cost: 3,600,000


If the selling price is $40.50 per unit, what is the cashbreak-even point? If depreciation is $300,000 per year, what is theaccounting break-even point? (Do not round intermediatecalculations. Round your answers to 2 decimal places, e.g.,32.16.)

Cash break even point:

Accounting break even point:

Watch
1
answer
0
watching
193
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Sixta Kovacek
Sixta KovacekLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $10.60 per unit, and the variable labor cost is $5.90 per unit.

a. What is the variable cost per unit? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)
Variable cost $

b. Suppose NSI incurs fixed costs of $580,000 during a year in which total production is 240,000 units. What are the total costs for the year? (Do not round intermediate calculations. Round your answer to the nearest whole number, e.g., 32.)
Total cost $

c. If the selling price is $42.50 per unit, what is the cash break-even point? If depreciation is $380,000 per year, what is the accounting break-even point? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)
Cash break-even point units
Accounting break-even point units

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

  1. What is the variable cost per unit? ($3.87)
  2. Suppose the firm incurs fixed costs of $650,000 during a yearin which total production is 320,000 units. What are the totalcosts for the year? ($1,888,400)
  3. If the selling price is $10 per unit, what is the cashbreak-even point? If depreciation is $190,000 per year, what is theaccounting break-even point? (106,036 units; 137,031 units)

We are evaluating a project that costs $924,000, has an eight-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 75,000 units per year. Price per unit is $46, variable cost per unit is $31, and fixed costs are $825,000 per year. The tax rate is 35 percent, and we require a 15 percent return on this project.

A-1. Calculate the accounting break-even point.

Break even point _______ Units

A-2. What is the degree of operating leverage at the accounting break-even point? (Round your answer to 3 decimal places. (e.g., 32.161))

DOL ________?

B-1. Calculate the base-case cash flow and NPV. (Round your NPV answers to 2 decimal places. (e.g., 32.16))

Cash flow $________
∆NPV/∆Q $________

B-2. What is the sensitivity of NPV to changes in the sales figure? (Do not round intermediate calculations and round your final answer to 3 decimal places. (e.g., 32.161))

∆NPV/∆Q $_________

C. What is the sensitivity of OCF to changes in the variable cost figure? (Negative amount should be indicated by a minus sign.)

∆OCF/∆VC $___________

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in