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ROI and RI with manufacturing costs. Fabulous Motor Company makes electric cars and has two products, the Simplegreen and the Fabulousgreen. To produce the Simplegreen.
ROI and RI with manufacturing costs. Fabulous Motor Company makes electric cars and has two products, the Simplegreen and the Fabulousgreen. To produce the Simplegreen. Fabulous Motor employed assets of 24,500,000 dollars at the beginning of the period and 30,00,000 of assets at the end of the period. Other costs to manufacture the Simplegreen include the following: Direct materials 1,000 dollars per unit set up 1,600 dollars per set-up hour Production 470 dollars per machine-hour General administration and selling costs total 8,940,000 dollars for the period. In the current period, Fabulous Motor produced 9,000 Simplegreen cars using 7,000 setup-hours and 176,500 machine-hours. Fabulous Motor sold these cars for 13,000 dollars each
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