Question
The following costs related to Moca Joe's new Frozen Gelato product for a relevant range of up to 20,000 units monthly: Variable Costs: Direct materials
The following costs related to Moca Joe's new Frozen Gelato product for a relevant range of up to 20,000 units monthly:
Variable Costs: |
|
Direct materials | $2.50 |
Direct labor | 0.75 |
Manufacturing Overhead | 1.25 |
Selling and administrative | 1.50 |
Fixed Costs: |
|
Manufacturing overhead | $10,000 |
Selling and Administrative | 5,000 |
The selling price per unit of each frozen gelato is $15.00. At a sales volume of 15,000 gelatos, what is the total cost for Moca Joe?
A. $ 155,000
B $ 100,000
C. $ 150,000
D. $105,000
The selling price per unit of each frozen gelato is $15.00. At a sales volume of 15,000 gelatos, what is the total profit for Moca Joe?
A. $ 120,000
B. $ 130,000
C. $ 225,000
D. $ 150,000
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