Listed below are the total costs incurred for Goalies Ball, Inc., a Soccer Ball manufacturer when 20,000
Question:
Listed below are the total costs incurred for Goalie’s Ball, Inc., a Soccer Ball manufacturer when 20,000 soccer balls are produced and sold during the month. The soccer balls sell for $35 each.
Variable Costs: | |
Shipping costs | $4,000 |
Logo imprinting on soccer balls | $1,000 |
Leather used in soccer balls | $25,000 |
Wages of assembly line workers | $70,000 |
Sales commissions | $6,000 |
Rubber used in soccer balls | $15,000 |
Fixed Costs: | |
Administrative salaries – main office | $60,000 |
Advertising | $11,200 |
Depreciation - Factory equipment | $7,800 |
Factory Manager salary | $18,000 |
Factory rent | $15,400 |
Main office rent | $8,400 |
Repairs and Maintenance – Factory | $6,900 |
Repairs and Maintenance – Main office | $3,700 |
Assume production were to increase to 22,000 soccer balls, which is within the firm’s relevant range of production. The total costs that would be incurred when 22,000 soccer balls are produced is:
Group of answer choices
$252,400
$264,500
$277,640
$265,540
$260,880
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso