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The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. The two products
The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. The two products only differ in how they are marketed. Product 1 is sold in bulk to customizing shops, while Product 2 is sold directly to consumers. Dub's estimated operating data for the year follows. Product 1 Product 2 Revenues $300,000 $400,000 Var Mfg $26,000 $26,000 $40,000 $60,000 Fixed Mfg $24,000 $32,000 Fixed G&A $50,000 $50,000 Unit Sales 2500 ..... 2500 Unless otherwise stated assume the fixed costs given above are allocated costs and unavoidable. What is the full manufacturing cost of a wheel in the Dubs division given the current level of production? Round to the nearest $0.01. Var G&A QUESTION 2 The Dubs Division of Fast Company (the parent company) produces wheels for off-road sport vehicles. Dubs has two products, 1 and 2. The two products only differ in how they are marketed. Product 1 is sold in bulk to customizing shops, while Product 2 is sold directly to consumers. Dub's estimated operating data for the year follows. ... Product 1 Product 2 Revenues $300,000 $400,000 Var Mfg $79,000 ......... $79,000 Var G&A $40,000 ........ $60,000 Fixed Mfg $24,000 .. $32,000 Fixed G&A $59,000 ..... $59,000 Unit Sales 1300 ... 1300 Unless otherwise stated assume the fixed costs given above are allocated costs and unavoidable. What would be the full manufacturing cost of a wheel in the Dubs division if total production were increased by 50% over the stated amount? Assume there are no capacity constraints. Round to the nearest $0.01
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