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Beach Balls and More is a local company that manufactures and sells beach balls. When the company produced 8,500 beach balls in February its partial
Beach Balls and More is a local company that manufactures and sells beach balls. When the company produced 8,500 beach balls in February its partial costs were: *see graph*
BUDGET LINE ITEM Hourly employees Store manager salary Electric/water Auto insurance Plastic parts Printing logo on balls The Mint coupons (advertising) Factory depreciation COST PER UNIT $15.00 $0.30 $0.25 $0.05 $0.85 $0.35 $0.12 $1.18 The company wants your help to plan for the month of March when Spring Break production is expected to be 12,200 beach balls. In great form, prepare a detailed budget listing each budget line item and the estimated total cost for that line item when 12,200 beach balls are produced E.g., list the total estimated cost for hourly employees when 12,200 balls are produced. 2. The rent cost is S6.25 per unit when 35.284 units are produced. How much is the rent cost expected to be when 40,506 units are produced next month? 3. Sarah's Bakery produced and sold 3,025 donuts last month and had fixed costs of $6,000. If production is expected to increase by 10% next month, what must be true about fixed costs? What are the two characteristics of fixed costs and the two characteristics of variable costs? 4 Step by Step Solution
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