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Company X produces a desk for sale to universities. A single desk requires $50 in...

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Accounting

Company X produces a desk for sale to universities. A single desk requires $50 in raw materials and $25 in direct labor to be made. These units are sold for $200. Company X has invested $100,000 in equipment and pays $1,000 monthly to rent a facility to produce these units.

a.What is the unit contribution for Company Xs product?

b.What are the fixed costs for Company X for Year 1 (i.e. 12 months of rent plus initial investment in equipment?)

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