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Exercise 7-18. At Accustart, the engraving department is a bottleneck, and the company is considering hiring an extra worker, whose salary will be $55,788 per
Exercise 7-18. At Accustart, the engraving department is a bottleneck, and the company is considering hiring an extra worker, whose salary will be $55,788 per year, to mitigate the problem. With the extra worker, the company will be able to produce and sell 6,400 more units per year. The selling price per unit is $15.00. Cost per unit currently is $7.83 as follows: Direct $2.88 materials Direct labor $.80 Variable $.25 overhead Fixed overhead $3.90 Total $7.83 Calculate the annual financial impact of hiring the extra worker. Enter your answers as amounts only with neither commas nor decimals
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