Question
Gratiano O. Corporation makes beautiful products. The firm's capacity is 1,000 units. The results for the first year of operations are based on 1,000 units
Gratiano O. Corporation makes beautiful products. The firm's capacity is 1,000 units. The results for the first year of operations are based on 1,000 units made and sold and can be found below:
Direct materials used, variable $4000
Administrative office salaries, fixed $10000
Factory supervision, fixed $4000
Sales commissions, variable ??
Depreciation, factory building, fixed $11000
Depreciation, administrative office equipment, fixed $500
Indirect materials, factory, variable $2000
Direct labor, variable $8000
Advertising, fixed ??
Insurance, factory, fixed $1880
Administrative office supplies (billing), variable $1000
Property taxes, factory, fixed $2000
Utilities, factory, fixed $3000
Sales $150000
Net Operating Income $89000
Contribution Margin $130000
1) What was the advertising cost for the Gratiano O. for the past year?
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