Classic cabinets have a factory that produces custom kitchen cabinets. It has multiple product lines. Materials and labor for the cabinets are determined by each job. To simplify the task, we will assume the following average costs. The materials include $1,500 for the wood and other materials on a per job basis. It requires 20 hours of labor on average for a custom kitchen. The hourly rate is $12. The sales price will be set at a markup of 85%. The company estimates that it will have 16,000 direct labor hours in total for the kitchen cabinets. It assumes 800 units are sold on average per year.

Answer rating: 100% (QA)

Classic Cabinets Company offers design and remodeling services to homeowners mainly for bathrooms kitchens dining rooms and main rooms One of the factories that the company has deals with production o... View the full answer