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Unformatted text preview: rimarily related to travel and that these costs tended to fluctuate as a function of volume of activity. Approximately $15,000 of the $90,000 was not related to activity volume. An interview with the manager revealed that the $90,000 was a cost category linked to skylights and did not include any costs associated with the other products of the firm. The $315,000 of fixed manufacturing overhead is comprised of: Insurance $ 25,000 Utilities $ 20,000 Factory Rent $ 270,000 Note: The factory has a capacity utilization rate that ranges between 70% and 75%. Recently there has been an enormous increase in media attention given to the concept of “sustainability and the environment”. Lieber is keen to capitalize on this shift in public sentiment and has been researching alternatives to enter this market. In the home products market there are two firms who service the western United States, including Washington State. These two firms have developed a brand recognition linked to sustainability and the environment. Home Depot is rumored to be int...
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- Fall '12