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Problem 14-2A (Part Level Submission) Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had

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Problem 14-2A (Part Level Submission) Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets Bell decided to turn its retail store into an audio equipment factory. Raw materials cost for an audio system will total $75 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 6 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,730 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; he monthly salary is $4,090 Factory janitorial costs are $1,490 monthly. Advertising costs for the audio system will be $9,120 per month. The factory building depreciation expense is $6,240 per year. Property taxes on the factory building will be $9,360 per year

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