Sage Hill Company specializes in manufacturing a unique model of bicycle helmet. The model is...
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Sage Hill 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). Sage Hills monthly manufacturing costs and other expense data are as follows. Rent on factory equipment $12,500 Insurance on factory building 1,740 Raw materials used (plastics, polystyrene, etc.) 80,500 Utility costs for factory 980 Supplies used for general office 320 Wages for assembly-line workers 65,700 Depreciation on office equipment 830 Miscellaneous materials used (glue, thread, etc.) 1,400 Factory managers salary 6,600 Property taxes on factory building 440 Advertising for helmets 14,600 Sales commissions 10,950 Depreciation on factory building 1,640
(a) Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns.
(b)Compute the cost to produce one helmet.
Production cost per helmet
$enter the production cost per helmet in dollars rounded to 2 decimal places
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