Categories

ACCT 386 - Week 3 - Homework - Question 6

ACCT 386 - Week 3 - Homework - Question 6
Price: $4.99
This Tutorial contains following Attachments
  • ACCT 386 - Week 3 - Homework - Question 6.doc
Qty:     - OR -   Add to Wish List

ACCT 386 - Week 3 - Homework - Question 6

There may be chances that the figures given in our question and your question doesn't matches. Don't worry, we are here to help you. Just write to us at studentwhiz@gmail.com and your answer is with you in no time.

 

Question 6

Tyrene Products manufactures recreational equipment. One of the company’s products, a skateboard, sells for $30. The skateboards are manufactured in an antiquated plant that relies heavily on direct labor workers. Thus, variable costs are high, totaling $21.00 per skateboard of which 70% is direct labor cost.

    Over the past year the company sold 53,000 skateboards, with the following operating results:

 

 

 

  Sales (53,000 skateboards)

$

1,590,000  

  Variable expenses

 

1,113,000  

 



  Contribution margin

 

477,000  

  Fixed expenses

 

378,000  

 



  Net operating income

$

99,000  

Management is anxious to maintain and perhaps even improve its present level of income from the skateboards.