Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment Insurance on factory building Raw materials (plastics, polystyrene, etc.) Utility costs for factory $11,800 2,100 84,100 1,000 400
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment Insurance on factory building Raw materials (plastics, polystyrene, etc.) Utility costs for factory $11,800 2,100 84,100 1,000 400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the
company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly
manufacturing cost 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
Miscellaneous materials (glue, thread, etc.)
Factory manager's salary
Property taxes on factory building
Advertising for helmets
Sales commissions
Depreciation on factory building
$11,800
Production cost per helmet $
2,100
84,100
1,000
400
59,300
900
1,300
6.300
400
14,600
10,700
1,700
Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.)
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