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Question 4 of 4 View Policies < Current Attempt in Progress -/4 : Par Play Company, a manufacturer of driver golf clubs, started production
Question 4 of 4 View Policies < Current Attempt in Progress -/4 : Par Play Company, a manufacturer of driver golf clubs, started production in November 2020. For the preceding five years, Par Play had been a retailer of sports equipment. After a thorough survey of driver golf club markets, Par Play decided to turn its retail store into a driver golf club factory. Raw materials costs will total $24 per driver. Workers on the production lines are paid on average $13 per hour. A driver usually takes 2 hours to complete. In addition, the rent on the equipment used to produce drivers amounts to $1,500 per month. Indirect materials cost $3 per driver. A supervisor was hired to oversee production; her monthly salary is $3,500. Factory janitorial costs are $1,400 monthly. Advertising costs for the drivers will be $6,000 per month. The factory building depreciation expense is $9,600 per year. Property taxes on the factory building will be $7,500 per year.
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