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10,000 helmets were made. Subtract the 8,000 helmets sold. That leaves you with 2,000 helmets that are UNsold. 2,000 helmets UNsold $17 product cost per helmet = $34,000 ABC Company manufactures bicycle helmets and has the following costs for the production of 10,000 helmets: Rent on factory equipment: $ 15,000 Insurance on factory building: $2,000 Raw materials (plastics, polystyrene, etc.): $ 80,000 Utility costs for factory: $ 1,000 Supplies for general office: $ 1,000 Wages for assembly line workers: $ 60,000 Depreciation on office equipment: $ 1,000 Miscellaneous materials (glue, thread, etc.): $ 1,000 Factory manager's salary: $ 6,000 Property taxes on factory building: $ 1,000 Advertising for helmets: $ 15,000 Sales commissions: $ 20,000 Depreciation on factory building: $ 4,000 Now calculate gross profit (assuming helmets sold for $25 per helmet). ENTER NUMBERS ONLY - no dollar signs, commas, decimal places or anything besides numbers. Answer:

10,000 helmets were made. Subtract the 8,000 helmets sold. That leaves you with 2,000 helmets that are UNsold. 2,000 helmets UNsold $17 product cost per helmet = $34,000 ABC Company manufactures bicycle helmets and has the following costs for the production of 10,000 helmets: Rent on factory equipment: $ 15,000 Insurance on factory building: $2,000 Raw materials (plastics, polystyrene, etc.): $ 80,000 Utility costs for factory: $ 1,000 Supplies for general office: $ 1,000 Wages for assembly line workers: $ 60,000 Depreciation on office equipment: $ 1,000 Miscellaneous materials (glue, thread, etc.): $ 1,000 Factory manager's salary: $ 6,000 Property taxes on factory building: $ 1,000 Advertising for helmets: $ 15,000 Sales commissions: $ 20,000 Depreciation on factory building: $ 4,000 Now calculate gross profit (assuming helmets sold for $25 per helmet). ENTER NUMBERS ONLY - no dollar signs, commas, decimal places or anything besides numbers. Answer:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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10,000 helmets were made. Subtract the 8,000 helmets sold. That leaves you with 2,000 helmets that are UNsold. 2,000 helmets UNsold $17 product cost per helmet = $34,000 ABC Company manufactures bicycle helmets and has the following costs for the production of 10,000 helmets: Rent on factory equipment: $ 15,000 Insurance on factory building: $2,000 Raw materials (plastics, polystyrene, etc.): $ 80,000 Utility costs for factory: $ 1,000 Supplies for general office: $ 1,000 Wages for assembly line workers: $ 60,000 Depreciation on office equipment: $ 1,000 Miscellaneous materials (glue, thread, etc.): $ 1,000 Factory manager's salary: $ 6,000 Property taxes on factory building: $ 1,000 Advertising for helmets: $ 15,000 Sales commissions: $ 20,000 Depreciation on factory building: $ 4,000 Now calculate gross profit (assuming helmets sold for $25 per helmet). ENTER NUMBERS ONLY - no dollar signs, commas, decimal places or anything besides numbers. Answer:
Transcribed Image Text:10,000 helmets were made. Subtract the 8,000 helmets sold. That leaves you with 2,000 helmets that are UNsold. 2,000 helmets UNsold $17 product cost per helmet = $34,000 ABC Company manufactures bicycle helmets and has the following costs for the production of 10,000 helmets: Rent on factory equipment: $ 15,000 Insurance on factory building: $2,000 Raw materials (plastics, polystyrene, etc.): $ 80,000 Utility costs for factory: $ 1,000 Supplies for general office: $ 1,000 Wages for assembly line workers: $ 60,000 Depreciation on office equipment: $ 1,000 Miscellaneous materials (glue, thread, etc.): $ 1,000 Factory manager's salary: $ 6,000 Property taxes on factory building: $ 1,000 Advertising for helmets: $ 15,000 Sales commissions: $ 20,000 Depreciation on factory building: $ 4,000 Now calculate gross profit (assuming helmets sold for $25 per helmet). ENTER NUMBERS ONLY - no dollar signs, commas, decimal places or anything besides numbers. Answer:
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