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Prepare a budgeted income statement using the information below.

EliteCare:

Direct materials (variable costs) Plastic = $151,200 2 oz of plastic pellets required for each toothbrush; 70,000x2=140,000 oz. $1.08/oz x 140,00 = $151,200 Bristles = $12,600 0.5 oz of bristles per toothbrush; 0.5 x 70,000 = 35,000 oz $0.36/oz x 35,000 = $12,600 Electric pieces = $420,000 Surface board and motor = $2 x 70,000 = $140,000 Charging stations = $4 x 70,000 = $280,000 Direct labor: $2.50/brush x 70,000 = $175,000 Manufacturing OH: (unit cost) Indirect Labor: Quality Control = $.05 per unit x 70,000 = $3,500 Material Handlers/unloaders = $0.10 x 70,000 = $7,000 Equipment Maintenance = $0.10 x70,000 = $7,000 Janitorial/Cleanup = $0.05 x 70,000 = $3,500 Corporate and Admin Salaries = $.30 x 70,000 = $21,000 Indirect materials (fasteners, glue, janitorial supplies, machine lubricants/grease, & safety Supplies) = $0.25/unit x 70,000 = $17,500 Total monthly cost = $690,00 (unit cost = $9.87)

Platinum:

Direct materials (variable costs) Plastic = $64,800 2 oz of plastic pellets required for each toothbrush; 30,000x2=60,000 oz. $1.08/oz x 60,00 = $64,800 Bristles = $5,400 0.5 oz of bristles per toothbrush; 0.5 x 30,000 = 15,000 oz $0.36/oz x 15,000 = $5,400 Electric pisces = $210,000 Surface board and motor = $3 x 30,000 = $90,000 Charging stations = $4 x 30,000 = $120,000 Direct labor: $2.75/brush x 30,000 = $82,500 Manufacturing OH: (unit cost) Indirect Labor: Quality Control = $.05 per unit x 30,000 = $1,500 Material Handlers/unloaders = $0.10 x 30,000 = $3,000 Equipment Maintenance = $0.10 x30,000 = $3,000 Janitorial/Cleanup = $0.05 x 30,000 = $1,500 Corporate and Admin Salaries = $.30 x 30,000 = $9,000 Indirect materials (fasteners, glue, janitorial supplies, machine lubricants/grease, & safety Supplies) = $0.25/unit x 30,000 = $7,500 Total monthly cost = $388,200 (unit cost = $12.94)

Common Fixed costs (both products): Factory Rent = $4,000/month Utility Bills = $2,200/month Insurance = $1,000/month

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