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Toledo Toy Company incurred the following costs during 20x1: Direct Materials 5,000,000 Direct Labor 3,500,000 Manufacturing Overhead Utilities (primarily electricity) 250,000 Depreciation Plant and Equipment
Toledo Toy Company incurred the following costs during 20x1:
Direct Materials | 5,000,000 |
Direct Labor | 3,500,000 |
Manufacturing Overhead | |
Utilities (primarily electricity) | 250,000 |
Depreciation Plant and Equipment | 350,000 |
Insurance | 260,000 |
Supervisory Salary | 470,000 |
Property Taxes | 330,000 |
Selling Cost: | |
Advertising | 315,000 |
Sales Commission | 145,000 |
Administrative Costs: | |
Salaries of top management | 580,000 |
Office Supplies | 70,000 |
Depreciation on Building and Equipment | 140,000 |
The company sold all of its products manufactured during the year. Depreciation is on a straight-line basis. During 20x1, the company operated at about half of its capacity, due to a slowdown in the economy. Prospects for 20x2 are slightly better. The marketing manager, forecasts a 30 percent growth in sales over the 20x1 level.
TOTAL FIXED COST in 20x1 amount to _________________.
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