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Sage Hill Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough
Sage Hill 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). Sage Hill's monthly manufacturing costs and other expense data are as follows. Rent on factory equipment Insurance on factory building $11,500 2,490 Raw materials used (plastics, polystyrene, etc.) 77,400 Utility costs for factory 910 Supplies used for general office 380 Wages for assembly-line workers 62,300 Depreciation on office equipment 890 Miscellaneous materials used (glue, thread, etc.) 1,410 Factory manager's salary 6,100 Property taxes on factory building 420 Advertising for helmets 14,400 Sales commissions 10,600 Depreciation on factory building 1,670
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