JCB Enterprises design and assemble handguns for Police Departments across the country. Only four other companies compete in the specialty market. The most popular police handgun is the JCB .357-caliber magnum, model 97, made of stainless steel. JCB estimates there will be 47,000 requests for this model in 2020.

Estimated costs related to this product for 2020 are shown below:

Description Budgeted Costs Gun casing 57,340,000 Ammunition chamber 40,420,000 Trigger mechanism 115, 150,000 Direct labor, assembly 99,170,000 Direct labor, finishing & testing 60,630,000 Variable indirect assemby costs 78,960,000 Fixed indirect assemby costs 33,840,000 Variable selling expenses 18,800,000 Fixed selling expenses 30,550,000 General operating expenses 18,330,000 Administrative expenses 12,690,000