Question
lamper Campers manufactures RVs for personal use. They have three different sizes, with 2 layouts for each size. The camper details are listed below. Layouts
lamper Campers manufactures RVs for personal use. They have three different sizes, with 2 layouts for each size. The camper details are listed below. Layouts can be chosen by the customer, but no custom campers are created. Everything is standard, with no upgrades available. The company has a manufacturing plant as well as administrative offices, with total fixed costs of $1.6 million per year. The company sells an average of 8,000 RVs per year, of various sizes.
Camper Size | Layout Options | Variable Costs | Retail Price |
16 foot camper | Bunk house (no couch) Single bed layout with couch | $5,000 $4,500 | $12,000 $10,500 |
30 foot camper | Bunk house with bunks in rear, table, no couch Single bed with couch and table | $7,800 $7,800 | $22,000 $20,000 |
35 foot camper | Bunk house as separate room, no couch Open floor plan with extra large living room and kitchen, couch and table | $6,500 $6,200 | $31,000 $30,000 |
Address the below questions:
Introduction to your paper
Provide a brief explanation of the costing methods available for your use (aka those we went over in this module).
Outline the benefits and drawbacks of each method
Identify the costing method that is best for this business. Why is this the best method?
Step by Step Solution
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Introduction Lamper Campers is a company that manufactures RVs for personal use The company offers three different sizes of campers each with two layout options The company has a manufacturing plant a...Get Instant Access to Expert-Tailored Solutions
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