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Question - Boxer Electronics produces flat screen TV's that sell for $1,250. During April, total operating expenses were:
Units produced and sold: 110
Component Cost $70,000
Supplies 1,780
Assembly Labor 23,400
Rent 2,000
Supervisory Salary 5,200
Electricity 350
Telephone 180
Gas 220
Shipping 1,840
Advertising 2,300
Administrative costs 12,500
Total: 119,770
a. Use account analysis to determine fixed cost per month and variable cost per TV.
b. Project total cost for May assuming production and sales of 150 units.
c. What is the contribution margin per TV?
d. Estimate total profit assuming production and sales of 150 unties.
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