CompuDesk, Inc.
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CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year's operations follow:
Units Beginning Inventory 0
Units Produced 10,000
Units Sold 9,000
Units in Ending Inventory 1,000
Variable Costs per Unit:
Direct Materials $60
Direct Labor $30
Variable Manufacturing Overhead $10
Variable Selling and Administrative $20
Total Variable Cost per Unit $120
Fixed Costs:
Fixed Manufacturing Overhead $300,000
Fixed Selling and Administrative $450,000
Total Fixed Costs $750,000
1. Assume the company uses variable costing. Compute the unit cost for one computer desk.
2. Assume that the company uses variable costing. Prepare a contribution format income statement for the year.
3. What is the company's break even point in terms of units sold?
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CompuDesk, Inc., makes an oak desk specially designed for personal computers. The desk sells for $200. Data for last year's operations follow:
Units Beginning Inventory 0
Units Produced 10,000
Units Sold 9,000
Units in Ending Inventory 1,000
Variable Costs per Unit:
Direct Materials $60
Direct Labor $30
Variable Manufacturing Overhead $10
Variable Selling and Administrative $20
Total Variable Cost per Unit $120
Fixed Costs:
Fixed Manufacturing Overhead ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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