Basic Industries manufactures plastic recycle containers. They have contracts with a number of municipalities and state governments

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Basic Industries manufactures plastic recycle containers. They have contracts with a number of municipalities and state governments and these contracts amount to 100,000 units a month. The only raw materials needed are the pre-dyed plastic resin and the recycle sticker placed on the outside of the container and together these are $.12 a container. A just-in-time firm, Claude nearly always has no inventory of finished product, nor will he have any beginning or ending inventories of raw materials. Labor wages are $10.00 and it takes 6 minutes to mold and deflash the container and to attach the label. The product sells for $2 each. Manufacturing overhead and SGA expense amount to $2000 and $5000 per month respectively.
 
 Help Claude work through a budget for one quarter.

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Entrepreneurial Small Business

ISBN: 978-1259573798

5th edition

Authors: Jerome Katz, Richard Green

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