Company production and operational costs

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Reference no: EM131002919

Hacker Aggregates mines and distributes various types of rocks. Most of the company's rock is sold to contractors who use the product in highway construction projects. Treva Hacker, company president, believes that the company needs to advertise to increase sales. She has proposed a plan to the other managers that Hacker Aggregates spend $93,000 on a targeted advertising campaign. The company currently sells 25,000 tons of aggregate for total revenue of $5,080,000. Other data related to the company's production and operational costs follow:

Direct labor	$1,510,000
Variable production overhead	240,000
Fixed production overhead	390,000
Selling and administrative expenses:
Variable	53,000
Fixed	337,000

Reference no: EM131002919

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