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Project 2 Question 2 of 3 Bill Johnson, sales manager, and Diane...

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Accounting

Project 2
Question 2 of 3
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 expenses-variable
Selling and administrative expenses-fixed
Manufacturing overhead-fixed
$250 per kayak
$190 per kayak
$160 per kayak
$420 per kayak
$430 per kayak
$183,500 per year
$320,000 per year
Bill and Diane have asked you to provide a cost-volume-profit 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 $2,400.
(a)
Calculate unit variable costs.
Unit variable costs
$
per unit
image

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