Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one
of the composite models of the kayak division. They have provided the following production and operational costs necessary to
produce one composite kayak.
$ per kayak
Resin and supplies
$ per kayak
Finishing kit seat rudder, ropes, etc.
$ per kayak
Direct Labor
$ per kayak
Selling and administrative expensesvariable
$ per kayak
Selling and administrative expensesfixed $ per year
Manufacturing overheadfixed $ per year
Bill and Diane have asked you to provide a costvolumeprofit analysis, to help them finalize the budget projections for the upcoming
year. Bill has informed you that the selling price of the composite kayak will be $
a
Calculate unit variable costs.
Unit variable costs $ per unit
