Gigantic Manufacturing Co. Ltd. specializes in manufacturing many different models of bicycles. Assume that a new model, the Jaguar, has been well accepted. As a result, the company has established a separate manufacturing facility to produce these bicycles. The company produces 1,000 bicycles per month. Gigantic's monthly manufacturing costs and other expense data related to these bicycles are as follows:

1. Rent on manufacturing equipment (lease cost) $2,000/month 2. Insurance on manufacturing building $750/month

3. Raw materials (frames, tires, etc.) $80/bicycle

4. Utility costs for manufacturing facility $1,000/month

5. Supplies for general office $800/month

6. Wages for assembly-line workers in manufacturing

facility $30/bicycle

7. Depreciation on office equipment $650/month

8. Miscellaneous materials (lubricants, solders, etc.) $1.20/bicycle 9. Property taxes on manufacturing building $2,400/year

10. Manufacturing supervisor's salary $3,000/month

11. Advertising for bicycles $30,000/year

12. Sales commissions $10/bicycle

13. Depreciation on manufacturing building $1,500/month