Current Proposed Production Volume Sales Price per Unit (Current) 300,000 units 8.00 375,000 $ 7.50 Part...
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Current Proposed Production Volume Sales Price per Unit (Current) 300,000 units 8.00 375,000 $ 7.50 Part 2 - Special Order Sales Price per Unit $ 3.75 Part 2 - Additional Sales due to Special Order 150,000 units Manufacturing Costs for rattles (based on production volume of 300,000 units): Direct Materials Direct Labor Packaging Variable Manufacturing Overhead Fixed Manufacturing Overhead $0.80 per unit $0.50 per unit $0.70 per unit $1.20 per unit $540,000 Selling and Administrative Costs for rattles (based on sales volume of 300,000 units): Sales Commissions $0.80 per unit Shipping Costs $0.50 per unit Advertising and Promotion (fixed) $180,000 $186,000 Selling and Admin Expenses (fixed) $250,000 Total VC $4.50 Total FC $970,000 Current Proposed Production Volume Sales Price per Unit (Current) 300,000 units 8.00 375,000 $ 7.50 Part 2 - Special Order Sales Price per Unit $ 3.75 Part 2 - Additional Sales due to Special Order 150,000 units Manufacturing Costs for rattles (based on production volume of 300,000 units): Direct Materials Direct Labor Packaging Variable Manufacturing Overhead Fixed Manufacturing Overhead $0.80 per unit $0.50 per unit $0.70 per unit $1.20 per unit $540,000 Selling and Administrative Costs for rattles (based on sales volume of 300,000 units): Sales Commissions $0.80 per unit Shipping Costs $0.50 per unit Advertising and Promotion (fixed) $180,000 $186,000 Selling and Admin Expenses (fixed) $250,000 Total VC $4.50 Total FC $970,000
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