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Homework 1 (1)

# Homework 1 (1) - Problem 1 JK Corporation JK Corporation...

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Problem 1 JK Corporation JK Corporation plans to manufacture fan motors. The company is considering two alternative production lines depending on the number of units they decide to manufacture per month. Financial data for these manufacturing options are as follows: Units Produced per month 1150 2775 Selling Price per unit \$149.43 \$144.95 Direct Labor cost per unit \$18.15 \$17.54 Direct Materials cost per unit \$23.54 \$21.76 Other Manufacturing Costs Variable Overhead per unit \$8.76 \$7.87 Monthly Mfg Overhead Costs \$49,550 \$54,660 \$6.28 \$5.91 \$28,550 \$35,770 For both proposed manufacturing options, compute the following: a. Total cost b. Average unit cost c. Total cost of goods sold d. Cost of goods sold per unit e. Total Revenue f. Breakeven volume g. Net Margin (%) h. Unit gross profit i. Gross margin (%) j. Total Net Profit

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Problem 2 Phone Pro Phone Pro is planning to outsource its manufacturing of cell phones to Mumbai, India. It plans to construct a factory there with machinery capable of producing
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Homework 1 (1) - Problem 1 JK Corporation JK Corporation...

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