Question
Jones Corporation's capacity is 1,000 units. The results for the first year of their operations are based on 1,000 units of a single product made
Jones Corporation's capacity is 1,000 units.
The results for the first year of their operations are based on 1,000 units of a single product made and sold and can be found below:
Direct materials used, variable $4,000
Administrative office salaries, fixed $10,000
Factory supervision, fixed $4,000
Sales commissions, variable ??
Depreciation, factory building, fixed $11,000
Depreciation, administrative office equipment, fixed $500
Indirect materials, factory, variable $2,000
Direct labor, variable $8,000
Advertising, fixed ??
Insurance, factory, fixed $1.500
Administrative office supplies (billing), variable $1,000
Property taxes, factory, fixed $2,000
Utilities, factory, fixed $3,330
Sales $150,000
Net Operating Income $89,000
Contribution Margin $130,000
Q: What was the companys advertising cost for the year?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started