Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,800 Insurance on factory building 2,100 Raw materials (plastics, polystyrene, etc.) 84,100 Utility costs for factory 1,000 Supplies for general office 400 Wages for assembly line workers 59,300 Depreciation on office equipment 900 Miscellaneous materials (glue, thread, etc.) 1,300 Factory manager’s salary 6,300 Property taxes on factory building 400 Advertising for helmets 14,600 Sales commissions 10,700 Depreciation on factory building 1,700 Compute the cost to produce one helmet
Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno’s monthly
Rent on factory equipment $11,800
Insurance on factory building 2,100
Raw materials (plastics, polystyrene, etc.) 84,100
Utility costs for factory 1,000
Supplies for general office 400
Wages for assembly line workers 59,300
Miscellaneous materials (glue, thread, etc.) 1,300
Factory manager’s salary 6,300
Property taxes on factory building 400
Advertising for helmets 14,600
Sales commissions 10,700
Depreciation on factory building 1,700
Compute the cost to produce one helmet
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