Question
One product line of Anitas Accessories (AA) is the assembly, testing, and marketing of a USB thumb drive The Speedster. The parts list for each
One product line of Anitas Accessories (AA) is the assembly, testing, and marketing of a USB thumb drive The Speedster. The parts list for each unit is: 1 standard USB plug, 1 USB mass storage controller, 1 NAND flash memory chip, 1 crystal oscillator, and 1 cover. The current variable elements per Speedster are: Sales Price (per unit)... $25.00; Material cost (per unit)... $6.00; Direct labor (per unit)... $4.00; Variable OH (per unit)... $7.00. The fixed costs associated with the manufacture and sales of this product are $480,000 per year and Anitas uses a marginal tax-rate of 20% for planning purposes. If AA sells 100,000 Speedsters what is expected profit before taxes?
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