Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore,...
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Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $56,000 per year, to solve the problem. With this extra worker, the company could produce and sell 2,900 more units per year. Currently, the selling price per unit is $25.00 and the cost per unit is $7.55. Direct materials $3.40 Direct labor 1.00 Variable overhead 0.45 Fixed overhead (primarily depreciation of equipment) 2.70 Total $7.55 Using the information provided, calculate the annual financial impact of hiring the extra worker. Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $56,000 per year, to solve the problem. With this extra worker, the company could produce and sell 2,900 more units per year. Currently, the selling price per unit is $25.00 and the cost per unit is $7.55. Direct materials $3.40 Direct labor 1.00 Variable overhead 0.45 Fixed overhead (primarily depreciation of equipment) 2.70 Total $7.55 Using the information provided, calculate the annual financial impact of hiring the extra worker.
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Profit 2435 Increase in profit Contribution from 29... View the full answer
Related Book For
Concepts in Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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