Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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 | $11,400 | |
Insurance on factory building | 2,500 | |
Raw materials (plastics, polystyrene, etc.) | 80,000 | |
Utility costs for factory | 1,000 | |
Supplies for general office | 400 | |
Wages for assembly line workers | 59,000 | |
Depreciation on office equipment | 900 | |
Miscellaneous materials (glue, thread, etc.) | 1,400 | |
Factory managers salary | 6,700 | |
Property taxes on factory building | 500 | |
Advertising for helmets | 14,500 | |
Sales commissions | 10,800 | |
Depreciation on factory building | 1,600 |
|
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started