UMB Auto Parts

Sales$29,200

Direct costs

Direct material7,500

Direct labor6,700

Shipping1,700

Let's take a look at how Baxter Battery's system work for another customer - UMB Auto Parts who placed a total of sixteen orders. Note that the 65 orders for LongLifes required a design change.

What is the margin analysis for this customer?

Orders

1.Ten orders for 50 surestarts per order

2.Sis orders for 40 LongLifes per order.

Machine-hours

1.The 500 SureStarts required 300 machine-hours.

2.The 240 LongLifes required 192 machine hours.