Question: MathGames produces two electronic, handheld educational games: Fun with Fractions and Count Calculus. Data on these products follow. Additional data from its two production departments
MathGames produces two electronic, handheld educational games: Fun with Fractions and Count Calculus. Data on these products follow.
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Additional data from its two production departments follow.
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Required
1. Using ABC, determine the cost of each product line.
2. What is the cost per unit for Fun with Fractions? What is the cost per unit of Count Calculus?
3. If Count Calculus sells for $ 59.95 per unit, how much profit does the company earn per unit of Count Calculus sold?
4. What is the minimum price that the company should set per unit of Fun with Fractions?Explain.
Fun with Fractions Count Calculus Production volume 50.,000 units Components450,000 parts Direct labor hours . . . . . 15,000 DLH Packaging materials ...150.000 boxes Shipping cartons100 units per carton 25 units per carton Machine setups52 setups 10,000 units 100,000 parts 2.000 DLH 10,000 boxes 52 setups 2,000 MH Department Driver Cost Assembly department Parts $495.000 Component cost.. Maintenance Packaging materials.... Machine hours 00,800 Wrapping department Boxes Cartons $460,800 27,360 187.200 Shipping....
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