Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. speedy bikes, inc. manufactures bicycles. because

Speedy Bikes, Inc. manufactures bicycles. Because it implemented lean production methods, it holds zero inventory...

50.1K

Verified Solution

Question

Accounting

Speedy Bikes, Inc. manufactures bicycles. Because it implemented lean production methods, it holds zero inventory at the end of each month. it is curently operating at 75% of capacity, producing and seling 10,000 bicycles per year. Financial data for its most recent fiscal year folows. Revenue= $3,500,000 Less: Costs (alphabetical order) CEO Salary= 150,000 Direct labor= 270,000 Factory rent= 400,000 Factory supervisor salaries= 220,000 Plant &machine depreciation= 720,000 Plant utilities (all variable)= 80,000 Radio advertising= 370,000 Raw materials= 450,000 Sales commissions= 110,000 Total Cost= 2,770,000 Net Operating Income= $730,000

Please show work so i can learn how to do this.

1. Compute the total manufacturing cost per unit.

2. Compute the gross margin per unit

3. Compute the contribution margin per unit

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Cholesterol levels for a group of women aged 30-39 follow an approximately normal distribution with mean...

Biology
1.2K views

Yeats use in the following excerpt from Down by the 7 Salley Gardens 4 with...

Physics
1.2K views

Questions 1 5 For each question an amount of solute is given and a temperature...

Physics
1.2K views

Three identical rods of length 1m each having cross section area of 1cm each and...

Physics
1.2K views

30 A U shaped wire having current i is place of magnetic field as shown...

Statistics
1.2K views

Pay Your bills A company audit showed that of 879 bills that were sent out...

Statistics
1.2K views

12 Canadian Industries tracks the annual sales from each of its three divisions to help...

Calculus
1.2K views

The following chart shows living wage jobs in Rochester per 1000 working age adults over...

Accounting
1.2K views

Please answer the following questions relating to Ranjot and Himanshu company accounts (in thousands of...

Accounting
1.2K views

ORIOLE Ltd. had earnings per share of $4 as of December 31, 2022, but paid...

Accounting
1.2K views

Describe the interrelationships of the financial statements. Which statements need to be prepared first? What...

Accounting
1.2K views

Flex Star also has a division that makes and sells garbage bags, Alex was not...