Campground inc is considering the production and sale of

Reference no: EM13481538

1. Campground Inc. is considering the production and sale of propane lamps. Annual fixed costs associated with the project are expected to total $60,000. In addition, each lamp would sell for $12 and would require $7 in variable costs. Calculate (a) the breakeven point in units, (b) the breakeven point in dollars, (c) the number of lamps that must be sold to earn a profit of $120,000, and (d) the operating income or loss at a sales volume of 16,000 lamps

2. PretPretty Pillows, Mfg., manufactures silk throw pillows. Last month the company produced 3,890 pillows. Using job order costing, determine the product unit cost for one pillow based on the following costs: production facility utilities, $1,600; depreciation on production equipment, $650; indirect materials, $400; direct materials, $5,300; indirect labor, $1,000; direct labor, $3,500; sales commissions, $4,000; president's salary, $8,000; insurance on production facility, $1,000; advertising expense, $900; rent on production facility, $6,000; rent on sales office, $4,000; and legal expense, $600. Round your answer to two decimal places.

Reference no: EM13481538

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