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Cost information Boys' trousers Girls' skirts Material per unit $25.00 $26.00 Labour rate per hour $18.50 $18.50 Labour hours per unit 2.50 hours 1.90 hours
Cost information Boys' trousers Girls' skirts Material per unit $25.00 $26.00 Labour rate per hour $18.50 $18.50 Labour hours per unit 2.50 hours 1.90 hours Overhead costs per unit $0.55 $0.70 Monthly rent $1,650.00 $1,650.00 Monthly depreciation on assets $250.00 $250.00 Monthly salary for Production Supervisor $1,250.00 $1,250.00 Monthly administration costs $500.00 $500.00 b Assume that the management of Cotton Bear Clothing Company has decided that the company has the capability and capacity to produce both boys' trousers and girls' skirts and that the products will sell in the ratio of 2:1 respectively. Using the cost information provided and assuming no additional costs will be incurred, calculate: i the weighted average unit contribution margin ii the combined break-even point for the two products, showing clearly how many units of boys' trousers and girls' skirts are required
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