Question: Help with calculating if we should accept a contract to manufacture cabinets for a project Direct labour is 2.6 hours per unit direct labour cost

Help with calculating if we should accept a contract to manufacture cabinets for a project


Direct labour is 2.6 hours per unit

direct labour cost $38.50 per hour

direct materials are $128 per unit

variable OH is $38 per unit

installation is 0.7 hours per unit

installation rate is $35.00 per hour

fixed OH is $42 per unit

delivery is $10 per unit

sell price is $340 per unit


I am also not sure if installation and delivery are fixed or variable costs?


Thanks

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