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Tell me what you want to do Home Insert Page Layout Formulas Data Review View File General o Cut Calibri Copy . , Format Painter

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Tell me what you want to do Home Insert Page Layout Formulas Data Review View File General o Cut Calibri Copy . , Format Painter Merge & Center. $. %, lu.-. O-A- ste B Alignment Font 17 AB Activity Case Individual Case 2 Danshui Plant No. 2 Exhibit 1 Standard Variable Costs for iPhone 4 (U.S. Dollars) Bill of materials (per unit) 0 Purchased chips Flash memory (Samsung) Application processor (Samsung) Chip for phone calls (Infinion) Gyroscope (STMMicroelectronics) 8 other purchased chips $27.00 10.75 14.05 2.60 70.95 15 16 $125.35 62.54 $187.89 Variable supplies and tools 18 19 20 21 Shipping (per unit) Labor 13.11 1.06 Assembly and packaging (per unit) 23 24 25 26 Machine depreciation 27 Utility fee and local taxes 28 Supervision 29 Monthly fixed costs 30 31 32 Exhibit 2 Budgeted Fixed Overhead per Month Factory rent 400,000 150,000 52,000 127,000 $ 729,000 DANSHUI PLANT NO. 2

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