The Case:

I need help with the administrative & selling portion to determine total cost and cost for 500 units:

Also,

1. How many units does Carol need to sell to break even?
2. Would the per-unit profit differ if a salesperson sold 450 units or 700 units at the $7.00 unit selling price?
3. What would be the per-unit profit if 80 units were sold by the office manager (no sales commission is paid on this order)?

The above is all the information I have - I already did the calculations except for the admin portion (which is what I need help with)

Carell Manufacturing company manufactures a single product. During the past three weeks, the company's cost accountant observed that while input prices were constant, output costs varied considerably. The following production costs were accumulated for the three-week period. Week 1 2 Output Units 400 500 600 Direct Direct Indirect Materials Labor Labor $300 $500 $180 375 625 200 450 750 220 Indirect Factory Other Materials Electricity Insurance Overhead $300 $115 $125 $310 300 125 125 360 300 135 125 410 3 The cost accountant was also able to determine that the selling price for a typical order of the product is $7.00 per unit and the sales force earns commission of 10% per item sold. The accountant also found that other administrative and selling expenses are fixed at $781 per week. Caroll does not carry inventory and, therefore, the number of units produced is equal to the number of units sold. The cost accountant wanted to develop an analysis to support managerial decision making, including break-even volume. To begin the analysis, the following weekly income information was compiled: Sales Cost of Goods Sold Gross Margin Other Expenses Net Income Week 1 $ 2,800 $ $ 1,830 $ $ 970 $ $ 1,061 $ $ (91) $ Week 2 Week 3 3,500 $ 4,200 2.110 $ 2,390 1,390 $ 1,810 1,131 $ 1,201 259 $ 609 Notice that cost of goods sold (COGS) per unit changes depending on output volume. At 400 units sold, COGS per unit is $4.58. At 500 units sold, COGS per unit is $4.22. At 600 units sold, COGS per unit is $3.98. Although the accountant found it unusual that COGS per unit would decline as production volume increased, the analysis was used to form the basis of decisions for Caroll Manufacturing. The accountant completed a cost analysis using the average production volume for three weeks and decided that the cost of production is $6.48 per unit. This per unit cost was also assumed to be the break-even cost and guidelines were provided to the sales force based on this premise. Caroll Manufacturing Total Fixed Cost Manufacturing Cost Direct materials Direct labor Indirect labor Indirect material Electricity Factory Insurance Other overhead Total Manufacturing Costs Unit Variable Cost $ 0.75 $ 1.25 $ 0.20 $ $ $ 0.10 $ $ $ 0.50 $ $ 2.80 $ Cost of 500 Units Total Per Unit $ 375.00 $ 0.75 $ 625.00 $ 1.25 $ 200.00 $ 0.40 $ 300.00 $ 0.60 $ 125.00 $ 0.25 125.00 $ 0.25 $ 360.00 $ 0.72 $ 2,110.00 $ 4.22 100.00 300.00 75.00 125.00 110.00 710.00 $ Administrative and selling Admin/Selling Expenses Total Costs $ 781.00