Question
McCracken Aerial, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and
McCracken Aerial, Inc., produces and sells a unique type of TV antenna. The company has just opened a new plant to manufacture the antenna, and the following cost and revenue data have been provided for the first month of the plants operation: |
Beginning inventory | 0 | |
Units produced | 36,750 | |
Units sold | 33,000 | |
Selling price per unit | $ | 94 |
Selling and administrative expenses: | ||
Variable per unit | $ | 3 |
Fixed (total) | $ | 519,000 |
Manufacturing costs | ||
Direct materials cost per unit | $ | 18.8 |
Direct labor cost per unit | $ | 9.4 |
Variable manufacturing overhead cost per unit | $ | 1 |
Fixed manufacturing overhead cost (total) | $ | 992,250 |
|
Because the new antenna is unique in design, management is anxious to see how profitable it will be and has asked that an income statement be prepared for the month.
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