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Assume that producing a batch of 100 model BAC-29 injectors requires 126 hours, distributed by department as shown in Exhibit 3, and $4,200 worth of
Assume that producing a batch of 100 model BAC-29 injectors requires 126 hours, distributed by department as shown in Exhibit 3, and $4,200 worth of materials. BAC sells these carburetors for $115 each. Determine if this would be profitable at gross profit level? (Answer using both the present and Sandy's first proposed costing methods). Exhibit 3: Direct labour-hour distribution for three CFI division activities Department BAC-29 Spare parts for inventory "Work for other divisions" (Hours per batch of 100 units) (Hours per typical month) (Hours per typical month) "Casting and stamping" 21 304 674 Grinding 12 270 540 Machining 58 1,115 2,158 Custom work - - - Assembly 35 - - (3) Assume that producing a batch of 100 model BAC-29 injectors requires 126 hours, distributed by department as shown in Exhibit 3, and $4,200 worth of materials. BAC sells these carburetors for $115 each. Determine if this would be profitable at gross profit level? (Answer using both the present and Sandy's first proposed costing methods). 126 1,689 3,372
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