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Ladoca Company, a manufacturer of tennis racquets, started production in November 2015. For the preceding five years Ladoca had been a retailer of sports equipment.
Ladoca Company, a manufacturer of tennis racquets, started production in November 2015. For the preceding five years Ladoca had been a retailer of sports equipment. After a thorough survey of tennis racquet markets, Ladoca decided to turn its retail store into a tennis racquet factory. Raw materials cost for a tennis racquet will total $23 per racquet. Workers on the production lines are paid on average $13 per hour, A racquet usually takes two hours to complete. In addition, the rent on the equipment used to produce racquets amounts to $1300 per month. Indirect materials cost $3 per racquet. A supervisor was hired to oversee production; her monthly salary is $3500. Factory janitorial costs are $1400 monthly. Advertising costs for the racquets will be $6000 per month. The factory building depreciation expense is $8400 per year. Property taxes on the factory building will be $7200 per year. Assuming that Ladoca manufactures, on average 2500 tennis racquets per month, enter each cost item in the answer sheet below, placing the dollar amount per month under the appropriate headings. Total the dollar amounts in each of the columns. Finally, calculate the cost to produce one racquet. Use $, do not use commas, and enter ne if there is no entry in a provided blank. Cost to produce one (1) racquet
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