Answer the following questions under required.

Answer the following questions under required.

Exercise 11-5Fixed versus variable cost behavior

Nasenko Company’s cost and production data for two recent months included the following:

	March	April
Production (units)	200	400
Rent	$1,800	$1,800
Utilities	$   600	$1,200

Required

A. Separately calculate the rental cost per unit and the utilities cost per unit for both March and April.

B. Identify which cost is variable and which is fixed. Explain your answer.

Exercise 11-17 Break-even point

Agassi Corporation sells products for $90 each that have variable costs of $60 per unit. Agassi’s annual fixed cost is $450,000.

Required

Determine the break-even point in units and dollars.

Exercise 11-18 Desired profit

Lindo Company incurs annual fixed costs of $80,000. Variable costs for Lindo’s product are $40 per unit, and the sales price is $64 per unit. Lindo desires to earn an annual profit of $40,000.

Required

Determine the sales volume in dollars and units required to earn the desired profit.