Question
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
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). Ohnos monthly manufacturing cost and other expense data are as follows.
Rent on factory equipment |
| $12,100 |
Insurance on factory building |
| 2,500 |
Raw materials (plastics, polystyrene, etc.) |
| 80,300 |
Utility costs for factory |
| 1,000 |
Supplies for general office |
| 300 |
Wages for assembly line workers |
| 63,700 |
Depreciation on office equipment |
| 800 |
Miscellaneous materials (glue, thread, etc.) |
| 1,300 |
Factory managers salary |
| 6,400 |
Property taxes on factory building |
| 500 |
Advertising for helmets |
| 14,400 |
Sales commissions |
| 10,900 |
Depreciation on factory building |
| 1,600 |
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