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Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $12,000 Insurance on factory building 1,610 Raw materials (plastics, polystyrene, etc.) 80,000 Utility costs for factory 950 Supplies for general office 360 Wages for assembly line workers 59,300 Depreciation on office equipment 910 Miscellaneous materials (glue, thread, etc.) 1,420 Factory manager's salary 6,800 Property taxes on factory building 440. Advertising for helmets 14,500 Sales commissions 10.220 Depreciation on factory building 1,690
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