Andy's Action Heroes Manufacturing Andy's Action Heroes Manufacturing Company manufactures old west action figures for retail sale. You have been put in charge of
Andy's Action Heroes Manufacturing Andy's Action Heroes Manufacturing Company manufactures old west action figures for retail sale. You have been put in charge of the new line of space ranger toys. The following is information regarding Andy's manufacturing process: - The average action figure retail price is S12.00. - Raw Materials for an action figure are S4.00. Assembly time: one employee can make one in 15 minutes. Production labor is paid at S8.00 per hour. - Operating expenses are as follows: o Salaries - $2,500 per week o Insurance - S1,200 per quarter o Rent - $1,500 per month o Utilities - $800 per month Based on the above information do the following: 1. Create a break even chart (table) of the given data. 2. Determine how many action figures must be sold per month to break even. Show your math. 3. Determine break even dollars. Show your math. 4. What is the contribution margin for each action figure sold? 5. How many employees are needed just to produce the breakeven quantity? 6. Provide a short write up presenting this information to Andy.
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