Question
6) You are the manager of a shoe factory. Using your existing factory processes, you can make tennis shoes in various colors like white, black
6) You are the manager of a shoe factory. Using your existing factory processes, you can make tennis shoes in various colors like white, black and even gray. Your factory overhead is $10,000 per month and you make approximately 10,000 shoes per month. Your typical batch size is 1000 shoes. One day, the marketing manager comes over and says she wants to do a custom batch of 10 silver shoes for one of her customers. Knowing there are various ways to allocate the costs of that small job, explain to the marketing manager 2 or 3 costs allocation strategies and some of the pros and cons of each.
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