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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?

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