Problem 4-9

Problem 4-9 - Selling and Admin Costs Jan \$23,570 Feb...

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Rhetorix, Inc. produces stereo speakers. Each unit (a pair of speakers) sells for \$800. Below is information on production/sales and costs for 2007.

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Production and Sales in Units January 105 February 117 March 97 April 106 May 115 June 125 July 128 August 132 September 138 October 126 November 124 1,119 December 108 1,108103 Total 1,421 Required Production Costs Jan \$88,860 Feb 97600 Mar 83,007 Apr 89,600 May 96,200 June 103,500 July 105,670 Aug 108,550

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Sept 112,978 Oct 104,200 Nov 102,750 Dec 91, 050 Total 1,183,965 Average Cost per unit \$833.19141
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Unformatted text preview: Selling and Admin. Costs Jan \$23,570 Feb \$25,200 Mar \$22,495 Apr \$23,720 May \$24,950 June \$26,250 July \$26,690 Aug \$27,200 Sept \$28,030 Oct \$26,400 Nov \$26, 150 Dec \$23,990 Total \$304,645 Average Cost per unit \$214.38776 a. Use the high-low method to identify the fixed and variable cost components for both production costs and selling and administrative costs. b. The company estimates that production and sales in 2008 will be 1,500 units. Based on this estimate, forecast income before taxes for 2008....
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This note was uploaded on 03/25/2012 for the course MGMT 640 taught by Professor Cindy during the Spring '11 term at Maryland.

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Problem 4-9 - Selling and Admin Costs Jan \$23,570 Feb...

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