Problem:
Night Shades Inc. (NSI) manufactures biotech sunglasses. The variable materials cost is $10.48 per unit, and the variable labor cost is $6.89 per unit.
Required:
Question 1: If the selling price is $49.99 per unit, what is the cash break-even point?
Question 2: If depreciation is $490,000 per year, what is the accounting break-even point?
Note: Show supporting computations in good form.