21. Identify the Selling and Administrative Costs, calculate the total amount.
22. The recession has taken a toll on the model business and production dropped to only 2,500 models per year. Would you expect the average product cost per model to increase, decrease, or remain unchanged? Please explain.
23. Referring back to the original information. The CEOs colleague in the facility down the street considered making himself a train and has prices the materials on the internet. He has asked the CEO if he could purchase a train at cost and the CEO has agreed to let him do so. Would you expect any disagreements between the two men over the price the fellow CEO should pay? Why? What prices does the Medival Toys CEO expect? What price does the fellow CEO expect?
24. The plant is operating at full capacity and cost $45 million to build just a year ago. To expand production, it would cost $35 million to construct a newer bigger factory. The CEO says that this would cost the company $80 million in just 2 years. What is the term that the CEO is not taking into consideration and what is its definition?

U Question 20 Choo Choo Toys Inc., manufactures model trains in lowa that have a broad appeal to kids and adults alike. The company has a significant amount of backorders that will allow production to continue indefinitely at full capacity of 5,000 units. Sales Model Train Parts (wheels, springs, motors, gears) Delivery driver salaries Factory supervision Factory accountant salary Depreciation, manufacturing plant Depreciation, office equipment Indirect Materials (oil, cleaning cloths) Assembly Labor (assembly, painting) Advertising Insurance (factory) Billing supplies (invoices) CEO Life Insurance Policy Utilities (factory) $5.550.000 $ 2.000.000 $ 225.000 $ 200,000 $ 120.000 $ 210,000 $ 5,000 $ 40,000 $ 180,000 $ 200,000 $ 22,000 $ 8,000 $ 400,000 $ 90,000 Identify and calculate the components of product cost, then compute the average product cost per unit