Project 2 Question 2 of 3 Bill Johnson, sales manager, and Diane...
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Accounting
Project
Question of
Bill Johnson, sales manager, and Diane Buswell, controller, at Current Designs are beginning to analyze the cost considerations for one of the composite models of the kayak division. They have provided the following production and operational costs necessary to produce one composite kayak.
Kevlar
Resin and supplies
Finishing kit seat rudder, ropes, etc.
Direct Labor
Selling and administrative expensesvariable
Selling and administrative expensesfixed
Manufacturing overheadfixed
$ per kayak
$ per kayak
$ per kayak
$ per kayak
$ per kayak
$ per year
$ per year
Bill and Diane have asked you to provide a costvolumeprofit analysis, to help them finalize the budget projections for the upcoming year. Bill has informed you that the selling price of the composite kayall be $
a
Calculate unit variable costs.
Unit variable costs
$
per unit
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