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With Complete Solutions Marek Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has
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Marek Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has a large number of orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Marek's monthly manufacturing costs and other expense data are as follows: Rent on factory equipment Insurance on factory building Raw materials (plastics, polystyrene, etc.) Utility costs for factory Supplies for general office Wages for assembly line workers Depreciation on office equipment Misc. materials (lubricants, solders, etc.) Factory manager's salary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building Additional cost data are as follows: $ 6,000 1,500 70,000 900 300 46,000 800 1,100 5,700 400 11,000 7,000 1,500 1. Sales commissions - 300 2. Insurance for office building - 1,200 3. Distribution costs - 400 4. Shipping costs - 850 5. Depreciation on factory equipment - 1,300 Marek Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has a large number of orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Marek's monthly manufacturing costs and other expense data are as follows: Rent on factory equipment Insurance on factory building Raw materials (plastics, polystyrene, etc.) Utility costs for factory Supplies for general office Wages for assembly line workers Depreciation on office equipment Misc. materials (lubricants, solders, etc.) Factory manager's salary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building Additional cost data are as follows: $ 6,000 1,500 70,000 900 300 46,000 800 1,100 5,700 400 11,000 7,000 1,500 1. Sales commissions - 300 2. Insurance for office building - 1,200 3. Distribution costs - 400 4. Shipping costs - 850 5. Depreciation on factory equipment - 1,300Step by Step Solution
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