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Myrmidon Corp. provides shields for barbaric security services. Brisies, the manager of a division of Myrmidon Corp. recently received a call from senior management that
Myrmidon Corp. provides shields for barbaric security services. Brisies, the manager of a division of Myrmidon Corp. recently received a call from senior management that there is an incentive promotion that will pay a bonus of 10% of before-tax profits in the second quarter of 2021. Myrmidon Corp. uses full absorption, actual costing to determine the before-tax income. Her estimated costs are as follows: Fixed Costs for a quarter Management salaries not associated with production $50,000 Rent of the manufacturing plant $50,000 Utility charges for the manufacturing plant $15,000 Variable Costs Rates Sales Commissions $30/shield sold Maintenance on manufacturing plant $50/shield Direct Materials $400/shield Direct Labor $125/shield Brisies anticipates selling 500 shields in the second quarter of 2021 at a unit price of $800/shield. *Do not consider the "bonus" as part of the costs in your analysis
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