Wagon Wheels manufactures personalized wagons for toddlers. Each wagon goes through a woodworking process, painting, and assembly. Wagon Wheels produces and sells 7,200 wagons per year. Wagon Wheels' owners have invested $55,000 in the business and desire a return of 15%. Wagon Wheels costs include

Variable

Fixed

Direct labour salaries

$240,000 per year

Office staff

$30,000 per year

Materials

$45 per wagon

Supplies

$4,000 per year

Marketing

$3.50 per wagon

$2,400 per year

Overhead

$1.50 per wagon

$850 per year

Wagon Wheels manufactures personalized wagons for toddlers. Each wagon goes through a woodworking process, painting, and assembly. Wagon Wheels produces and sells 7,200 wagons per year. Wagon Wheels' owners have invested $55,000 in the business and desire a returnl of 15%. Wagon Wheels costs include Variable Fixed Direct labour salaries $240,000 per year Office staff $30,000 per year Materials $45 per wagon Supplies $4,000 per year Marketing $3.50 per wagon $2,400 per year Overhead $1.50 per wagon $850 per year