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Birch Company normally produces and sells 45,000 units of RG-6 each month. The selling price...

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Accounting

Birch Company normally produces and sells 45,000 units of RG-6 each month. The selling price is $20 per unit, variable costs are $10 per unit, fixed manufacturing overhead costs total $190,000 per month, and fixed selling costs total $40,000 per month. Employment-contract strikes in the companies that purchase the bulk of the RG-6 units have caused Birch Companys sales to temporarily drop to only 9,000 units per month. Birch Company estimates that the strikes will last for two months

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