14-1

P14-1A Lott Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Lott's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment. 9,000 Insurance on factory building 1,500 Raw materials (plastics, polystyrene, etc.) 75,000 900 Utility costs for factory Supplies for general office 300 Wages for assembly line workers 53,000 Depreciation on office equipment 800 Miscellaneous materials (glue, thread, etc.) 1,100 5,700 Factory manager's salary Property taxes on factory building 400 Advertising for helmets 14,000 Sales commissions 10,000 Depreciation on factory building 1,500