What if we sell the steel rings giving a set of rubber rings away?

.

Total cost of both rings:

Plastic279.65

Steel+ 1107.90 = $1387.55 per hundred units

According to the case study, the total selling price for both types of rings would be $1350.With the combination of cost being $1387.55 being more than the selling price we could subtract the price from the cost.

Cost per hundred$1387.55

Price per hundred-$1350 = $37.55

Prepare a reconcilation of units

Table A 100 Plastic Rings 100 Steel Rings Material $ 17.65 $321.90 Direct labor 65.50 196.50 Overhead Departmental 131.00 393.00 Administrative 65.50 196.50 Total (cost) $279.65 $1,107.90