Question 1
The Janesky Company has collected data on the manufacture of 8,388 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.
| Units sold last month |
8,388 |
| Direct materials |
$272,615 |
| Direct labor |
$117,500 |
| Manufacturing variable overhead |
$447,354 |
| Selling and administrative costs |
$461,116 |
What would be the break even price to produce and sell 7,710 units in the coming month?
Question 2
The Janesky Company has collected data on the manufacture of 1,944 robot grippers last month. The breakdown of total costs is shown below. They now need to plan for future months.
| Units sold last month |
1,944 |
| Direct materials |
$343,836 |
| Direct labor |
$242,293 |
| Manufacturing variable overhead |
$483,202 |
| Selling and administrative costs |
$103,688 |
What is the break even quantity for a price of $405?
Question 3
Janesky Compamy has been asked by a customer to ship an additional 250 units of their product as a special emergency order. You could do this on overtime during the weekend when labor costs would be time and a half. Sufficient materials are available in-house.
| Units sold last month |
4,350 |
| Direct materials |
$201,636 |
| Direct labor |
$403,636 |
| Manufacturing variable overhead |
$411,296 |
| Selling and administrative costs |
$409,995 |
It the policy on such special orders is a markup (over cost) of 16%, what should you charge for the 250 units?