An assembly line can produce 120 units per hour and the material cost is ($15) per unit.

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An assembly line can produce 120 units per hour and the material cost is \($15\) per unit. A single employee, who is paid \($22\) per hour, can operate the assembly line. The employee works an eight-hour day and there are twenty workdays in a month. The company’s contribution to Social Security is 7.65 percent of employee pay, and benefits cost the company about \($565\) per month per employee.

Maintenance on the assembly line costs \($1,000\) per month. What is the total cost of producing the product for one month?

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Entrepreneurial Financial Management An Applied Approach

ISBN: 9781000650488

5th Edition

Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman

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