Question
Listed below are the total costs incurred for Goalies Ball, Inc., a Soccer Ball manufacturer when 20,000 soccer balls are produced and sold during the
Listed below are the total costs incurred for Goalie’s Ball, Inc., a Soccer Ball manufacturer when 20,000 soccer balls are produced and sold during the month. The soccer balls sell for $35 each.
Variable Costs: | |
Shipping costs | $4,000 |
Logo imprinting on soccer balls | $1,000 |
Leather used in soccer balls | $25,000 |
Wages of assembly line workers | $70,000 |
Sales commissions | $6,000 |
Rubber used in soccer balls | $15,000 |
Fixed Costs: | |
Administrative salaries – main office | $60,000 |
Advertising | $11,200 |
Depreciation - Factory equipment | $7,800 |
Factory Manager salary | $18,000 |
Factory rent | $15,400 |
Main office rent | $8,400 |
Repairs and Maintenance – Factory | $6,900 |
Repairs and Maintenance – Main office | $3,700 |
Assume production were to increase to 22,000 soccer balls, which is within the firm’s relevant range of production. The total costs that would be incurred when 22,000 soccer balls are produced is:
Group of answer choices
$252,400
$264,500
$277,640
$265,540
$260,880
Step by Step Solution
3.48 Rating (145 Votes )
There are 3 Steps involved in it
Step: 1
Answer 264500 Explanation Computation of variable cost per unit Total ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started