Company Overview: Statton Furniture Company is a manufacturer of unique cherry traditional furniture. Each hand-crafted piece is stamped with the date and identification number of the cabinet maker who built it.

Managerial Accounting Topic(s): Production costs and quality

Web Site: www.statton.com

To Learn More about the Company: Click on the following links:

1. Read about the company and what it does on its home page.

2. From the home page, click on About Us and Our Products to learn about the furniture manufacturing process.

Discussion Questions:

1. What types of variable costs would be incurred by Statton Furniture?

2. What types of fixed costs would be incurred by Statton Furniture?

3. How would Statton's contribution margin and breakeven point be impacted if the company incorporated additional automation (e.g. robotics) in its manufacturing process in place of some of the labor-intensive methods currently used?