Compute the number of pans that must be sold for Werner to break even. pans 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? Unit variable cost 3. How many pans must be sold for Werner to earn operating income of $11,524? pans 4. How much sales revenue must Werner have to earn operating income 11524$
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Units Sold to Break Even, Unit Variable Cost, Unit
Werner Company produces and sells disposable foil baking pans to retailers for $2.95 per pan. The variable cost per pan is as follows:
| Direct materials | $0.22 |
| Direct labor | 0.56 |
| Variable factory |
0.70 |
| Variable selling expense | 0.13 |
Fixed manufacturing cost totals $303,290 per year. Administrative cost (all fixed) totals $41,358.
Required:
1. Compute the number of pans that must be sold for Werner to break even.
pans
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?
Unit variable cost
3. How many pans must be sold for Werner to earn operating income of $11,524?
pans
4. How much sales revenue must Werner have to earn operating income
11524$
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