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1- A cabinet manufacturing company has started its operations by July, 1st. The following cost items have been determined until the end of December: (a)
1- A cabinet manufacturing company has started its operations by July, 1st. The following cost items have been determined until the end of December: (a) Raw material #1 -> unit cost is 20 $/m2 and 6 m2 is required per cabinet; Raw material #2 - > unit cost is 40 $/m2 and 4 m2 is required per cabinet. (b) Spare material (such as screw, lock, nail etc.) -> unit cost is 70 $ per cabinet. (c) Direct labor costs -> 150 $ per cabinet. (d) Foreman and supervisor cost -> 100.000 $ monthly. (e) Machinery depreciation -> 120.000 $ monthly. (1) Administrative costs of production -> 140.000 $ monthly. Suppose that the company has produced 2.000 cabinets during the period. What would be the unit cost for these cabinets? 2- Refer to Question 1. Suppose that the company has sold all of its cabinets at a price of 1.800 $. What is the gross profit? 3- Refer to Question 1 and 2. What is the contribution margin? 4- Refer to Question 1, 2, and 3. What is the breakeven number of units
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