This question uses the same nancial data as Question 6, but it is a sepa The Gym Company produces weights in different sizes and sells them rate question. to gym equipment distribution companies who in turn sell them to various gyms such as Boston Sports Club or Gold's Gym. The manufacturing plant occupies 75% of the total buildings and grounds. Approximately 85% plant. External vendors provide all of the materials and supplies. The of the utilities are for the manufacturing sales force is paid entirely on commissions. Advertising spending is set by contract at beginning of the year. At full capacity, the plant is capable of producing 500,000 units per year, but 2006 production volumes are below this maximum capacity level. Total 2006 Product Cost per unit was $3.10, $0.60 of which was variable. Information on their 2006 costs and related inventory balances are listed in the table below. Raw materials inventory $60,000 31-Dec-2006 During the Year $20,000 Work-in-process inventory 72,000 Finished goods inventory 40,000 Total manufacturing costs 88,000 50,000 $1,310,250 : : : : : 1,334,250 1,284,250 164,500 236,500 235,000 Factory maintenance staff salaries Building rental 154,000 ??? 250,000 : : : : lIlI 148,000 120,000 110,000 98,400 \" |l|l Cost of goods sold : Purchases of raw materials 164,500 Marketing salaries : Non factory administrative salaries : Factory maintenance staff salaries 154,000 Direct labor ??? Utilities (Electricity, water, phone... 120,000 Sales commissions (5% of sales) : Factory equipment depreciation 490,250 What were total units manufactured and the total xed manufacturing cost incurred in 2006? O a) 422,661 & $1,025,250 0 b) 414,274 & $870,688 O c) 430,403 & $1,044,250 0 d) 427,823 & $902,688 C) e) 417,500 & $1,043,750 1') None of the above