(Cost engineering subject). The company paper x manufactures used cards. To make a card the...
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Accounting
(Cost engineering subject).
The company paper x manufactures used cards. To make a card the company incurs material costs of $2.90 of paper per card, $1.15 of ink per card, and $0.35 of wrapping per card. It also has a direct labor cost of $750,000 per month and an indirect cost calculated based on the following formula:
Indirect cost = $46,900 + 2.72n
The company manufactures 115,000 cards monthly and has an operating expense divided as follows: Administration expenses of $122,000 per month and selling expenses of $88,000 per month. The company manages a profit margin of 30% per card.
Calculate:
- The total monthly indirect cost of the company.
- The unit indirect cost per card.
- The total unit manufacturing cost per card.
- The unit sale price.
- Prepare an income statement for the company
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