Werner Company produces and sells disposable foil baking pans to retailers for $2.65 per pan. The variable cost per pan is as follows:Direct materialsDirect laborVariable factory overheadVariable selling expenseFixed manufacturing cost totals $143,704 per year. Administrative cost (all fixed) totals $19,596.Required:$0.270.510.690.18Compute the number of pans that must be sold for Werner to break even.pansConceptual Connection: What is the unit variable cost? What is the unit variable manufacturing cost? Round your answers to the nearest cent.Unit variable costUnit variable manufacturing costWhich is used in cost-volume-profit analysis?Unit variable cost ✓How many pans must be sold for Werner to earn operating income of $7,000?pansHow much sales revenue must Werner have to earn operating income of $7,000?

The break even sales are calculated as fixed costs divided by contribution Margin Ratio. The…

Direct materials Direct labor Variable factory overhead Variable selling expense Fixed manufacturing cost totals $143,704 per year. Administrative cost (all fixed) totals $19,596. Required: Compute the number of pans that must be sold for Werner to break even. pans $0.27 0.51 0.69 0.18 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 ✓ How many pans must be sold for Werner to earn operating income of $7,000? pans How much sales revenue must Werner have to earn operating income of $7,000?

Direct materials Direct labor Variable factory overhead Variable selling expense Fixed manufacturing cost totals $143,704 per year. Administrative cost (all fixed) totals $19,596. Required: Compute the number of pans that must be sold for Werner to break even. pans $0.27 0.51 0.69 0.18 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 ✓ How many pans must be sold for Werner to earn operating income of $7,000? pans How much sales revenue must Werner have to earn operating income of $7,000?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

Section: Chapter Questions

Problem 7EB: Oat Treats manufactures various types of cereal bars featuring oats. Simmons Cereal Company has...

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