Question
Shingle Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.
Shingle Enterprises is considering manufacturing a new product. It projects the cost of direct materials and rent for a range of output as shown below.
| Output in Units | Rent Expense | Direct Materials |
| 1,000 | $5,585 | $4,468 |
| 2,000 | 5,585 | 8,042 |
| 3,000 | 8,936 | 7,500 |
| 4,000 | 8,936 | 10,000 |
| 5,000 | 8,936 | 12,500 |
| 6,000 | 8,936 | 15,000 |
| 7,000 | 8,936 | 17,500 |
| 8,000 | 8,936 | 20,000 |
| 9,000 | 11,170 | 32,728 |
| 10,000 | 11,170 | 39,095 |
| 11,000 | 11,170 | 49,148 |
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Auditing The Art and Science of Assurance Engagements
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
13th Canadian edition
133405508, 978-0133405507
