Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the...

 

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Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak. Kevlar $210 per kayak Resin and supplies $180 per kayak Finishing kit (seat, rudder, ropes, etc.) $200 per kayak Direct Labor $480 per kayak Selling and administrative expenses-variable $410 per kayak Selling and administrative expenses-fixed $196,400 per year Manufacturing overhead-fixed $230,000 per year Bill and Diane have asked you to provide a cost-volume-profit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayak will be $2,300. (a) Calculate unit variable costs. Unit variable costs +A $ per unit Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak. Kevlar $210 per kayak Resin and supplies $180 per kayak Finishing kit (seat, rudder, ropes, etc.) $200 per kayak Direct Labor $480 per kayak Selling and administrative expenses-variable $410 per kayak Selling and administrative expenses-fixed $196,400 per year Manufacturing overhead-fixed $230,000 per year Bill and Diane have asked you to provide a cost-volume-profit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayak will be $2,300. (a) Calculate unit variable costs. Unit variable costs +A $ per unit

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Answer To calculate the unit variable costs ... View the full answer