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FIN 370 Week 3 Risk and Return Problem Sets( 7-21,7-27,8- 19,8-21,9-33)
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1. Calculating Costs and Break-Even [ LO3 ] Night Shades, Inc.( NSI), manufactures biotech sunglasses. The variable materials cost is $ 9.64 per unit, and the variable labor cost is $ 8.63 per unit. a. What is the variable cost per unit? b. Suppose NSI incurs fixed costs of $ 915,000 during a year in which total production is 215,000 units. What are the total costs for the year? c. If the selling price is $ 39.99 per unit, does NSI break even on a cash basis? If depreciation is $ 465,000 per year, what is the accounting break-even point?
7. Calculating Break-Even [ LO3 ] In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even. ============================================

FIN 370 Week 3 Risk and Return Problem Sets( 7-21,7-27,8- 19,8-21,9-33)

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FIN 370 Week 3 Risk and Return Problem Sets
Complete the following problem sets from Chapter 7 in Microsoft ® Excel ®:
· 7-21
· 7-27