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DIRECTORIOUR 4.000 5.900 500 1.500 1.000 Q2: A company manufactures Imitation leather. The cost allocation sheet for the months September 20X1 and December 20X1 are

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DIRECTORIOUR 4.000 5.900 500 1.500 1.000 Q2: A company manufactures Imitation leather. The cost allocation sheet for the months September 20X1 and December 20X1 are as follows: December 20X1 September 20X1 Direct Material 6.000 Direct Labor 5.000 Factory Overhead 6.500 -Indirect Material 3.000 2.400 - Indirect Labor 000 2.000 - Depreciation Marketing and Selling Costs 3.000 - Material Cost 800 - Wages and Salarles 1.400 - Depreciation General Administrative Costs BEE 3.800 3.100 - Material Cost 500 Wages and Salaries 3.000 Rent Total Cost ER R ORS24.300 RAINLARDA 20.250 5.000 m. Imitation leather has been manufactured in December. Company operates full capacity in October to December the rest months works at 80% capacity. Company intends to gain at least 725.profit. margin both from the normal and the additional orders. Company has received an additional order in September including 1.200 m. leather with 5,5 TL price. Required: a) Compute the total cost function and ascertain the selling price that meets the company's goal. b) Company decide to meet 200 m of offer form existing production and produce 1.000 m additionally. Under this assumption evaluate the offered price. 250 250 300 300

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