Your plant produces 134 snowmobiles per month. Direct costs are $2,540 per snowmobile. The monthly overhead is $87,000. What is the average cost per snowmobile with overhead? Solve the problem
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Your plant produces 134 snowmobiles per month. Direct costs are $2,540 per snowmobile. The monthly
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- ?? Financial accounting questionYou want to open up a custom skateboard shop. You can sell each skateboardfor $160. It takes 3 hours to make each skateboard. Each skateboardmaker earns $25 per hour. Each skateboard costs $15 in raw materials. Youestimate that your fixed costs are $20,000 per month.a. What is the contribution margin?b. How many skateboards must be sold each month in order to break even?c. What is the break-even dollar amount?d. How many skateboards must be sold to earn a $10,000 profit each month?e. What is your total monthly revenue if you want to earn a profit of $8,000?Terra Nova, Inc. has the capacity to rewire 300 vehicle wiring harnesses per day. The expected number of vehicles needing to be rewired per day is 225. The company is paid $26 for each wiring harness rewired. The fixed cost of renting the rewiring equipment is $250 per day. The vehicle bays space rents for $150 per day. The cost of materials is $18 per vehicle and labor costs $3 per wiring harness. What is the break-even number of wiring harnesses rewired per day?
- The manager of a car wash must decide whether to have one or two wash lines. One line will mean a fixed cost of $5,600 a month, and two lines will mean a fixed cost of $9,520 a month. Each line would be able to process 15 cars an hour. Variable costs will be $3 per car, and revenue will be $5.95 per car. The manager projects an average demand of between 14 and 18 cars an hour. Would you recommend one or two lines? The car wash is open 280 hours a month.. Choose lineA company has been making wakeboards for many years. The monthly overhead is $19,000 and each wakeboard costs $363 in materials and labor to make. If these items are sold for $475. How many wakeboards must be sold to break even? What is the profit in dollars if 189 wakeboards are made and sold?Suppose that you operate a business that produces widgets. What's a widget? A widget is a hypothetical product with no particular attributes or features to confuse us. Just widgets. In the course of a month, you produce 5,000 widgets. You only have three inputs when producing widgets; 1) factory space; 2) labor; and 3) raw materials. You pay rent of $3,000 per month. Your use of labor and raw materials depends on how many widgets you produce. When you produce 5,000 widgets, your labor costs are $4,000 and your raw material costs are $1,500. • What is your average cost (or average total cost) of producing 5,000 widgets? (Enter your answer without a dollars sign ($) in the following form: (i.e., dollars and cents) -'--
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