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Perfect Stampers has collected new data over the last three months to perform an analysis of their budgeting and cost computations: Average production labor cost per month $7,500 Average raw materials consumed per month $1,525 Average utilities for the production facility per month $600 Variable indirect manufacturing overhead costs per month $2,100 Fixed costs per month $2,860 Average production volume in units 2,000 hub caps Selling price per hub cap $10.20 each Compute the unit variable cost, the contribution margin per unit and the break-even point in units?
Financial Statement Analysis and Preparation
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Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.
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Computation of Free Cash Flow
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