Question

Oxmoor Manufacturing Co. expects to make 40,000 chairs during the 2013 accounting period. The company made 4,000 chairs in January. Materials and labor costs for January were $20,000 and $30,000, respectively. Oxmoor produced 3,200 chairs in February. Material and labor costs for February were $16,000 and $24,000, respectively. The company paid the $360,000 annual rental fee on its manufacturing facility on January 1, 2013.

Required
Assuming that Oxmoor desires to sell its chairs for cost plus 40 percent of cost, what price should be charged for the chairs produced in January and February?



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  • CreatedFebruary 07, 2014
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