A manufacturing company makes three products, A, B, and C. The fixed FO is

$60,000, consisting of $10,000 for material handling, material waste, and procurement;

$30,000 for rent and utilities; and $20,000 for safety and canteen costs. Other costs are shown in Table 6.16.

a. Determine the product cost for products A, B, and C, using the ABC method.

b. If products A, B, and C are sold at $400, $350, and $150 per unit, respectively, what is the gross profit for each product?

c. What is the company’s total gross profit per month if all units produced are sold?