We can produce 62,000 mice in the first quarter of the year and add $1,550,000 in revenue!
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Question:
We can produce 62,000 mice in the first quarter of the year and add $1,550,000 in revenue!
Your boss is fascinated and says she want to move forward but... she wants to make sure this is really going to be a profitable venture and asks you the following:
- What is the number of mice we would need to produce to meet the sales projections?
- What about material costs? What are the raw materials needed? How much of the raw materials do we need to produce one mouse? How much of the raw materials do we need to meet the sales projections?
- What about labor costs? How many mice can the production department produce per hour and what do we pay personnel in the production department per hour?
This is where you must go to the drawing board to figure out the amount.
Using the picture Excel spreadsheet, you are to fill out the amount for the Production, Direct Materials, and Direct Labor costs. All assumptions are provided on the Excel spreadsheet.
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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