Question

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: Direct materials Direct labor $0.37 0.63 Variable factory overhead Variable selling expense 0.53 0.12 Fixed manufacturing cost totals $111,425 per year. Administrative cost (all foxed) totals $48,350. Unless otherwise instructed, round all total doilar figures (eg. sales, total contribution-margin) to the nearest dollar, breakeven or targer units to the nearest unit, and unit costs and unit contribution margins to the nearest cent. Round ratios to four significant digits Required: 1. Compute the number of pans that must be sold for Werner to break even. Break-even units 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 Previous Next Check My Work Save and Exit Sub Assignment or 21/2020

Answer 1

(1) lotal variable cost - $037+ $ 0.63 + $0.53+ $0.12 $1.65 Total tixed cost - $ 111,45+ $ 48,350 $ 159,775 Bueak even units pixed cost coutsibution po - P 145,250 $159,771 $275-$1.65 - Buear even units - page 145,250 pans. $165 undt variable cost - unes variable manufactuella - cos ($1.65-80-12) $153 cohich i used in cost wolume puofer analysis unit variable cost

(3) Operating income of $13,830 Targes unite a fuget puctir + fixed cost contribution pu $13,530+ $ 159,745 = $ 173,305 $11 - 157,550 157,550 Pans (4) Pauger units rugel und 157,550 eevenue - 157,550 X $2.75 = $433,262-5 $433,261 Sales Revenue - $ 433,263.