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Stand Up Desk Company manufactures standing desks that are gaining widespread popularity. The company has a backlog of orders that is large enough to keep

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Stand Up Desk Company manufactures standing desks that are gaining widespread popularity. The company has a backlog of orders that is large enough to keep production going indefinitely at the plant's full capacity of 5,000 standing desks per year. The firm holds zero inventory. Annual financial data follows. Units Produced 5,000 Units Sold 5,000 Total Per Unit Revenue $1,750,000 $350.00 Less: Costs Wood and glass used in desks $540,000 $108.00 Administrative office salaries $150,000 $30.00 Factory supervisor salaries $100,000 $20.00 Sales commissions $60,000 $12.00 Cutting and assembly machine depreciation $135,000 $27.00 Cutting and assembly labor $90,000 $18.00 Advertising (billboard) $30,000 $6.00 Factory rent $175,000 $35.00 Property taxes, factory $85,000 $17.00 Net operating income $385,000 $77.00

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