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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 $11,400 Insurance on factory building 1,700 Raw materials (plastics, polystyrene, etc.) 80,500 Utility costs for factory 1,000 Supplies for general office 300 Wages for assembly line workers 65,700 Depreciation on office equipment 800 Miscellaneous materials (glue, thread, etc.) 1,400 Factory manager's salary 6,600 Property taxes on factory building 400 Advertising for helmets 14,600 Sales commissions 11,000 Depreciation on factory building 1,600
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