Tyrene products manufactures recreational equipment one of

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Tyrene Products manufactures recreational equipment. One of the company's products, a skateboard, sells for $30. The skateboards are manufactured in an antiquated plant that relies heavily on direct labor workers. Thus, variable costs are high, totaling $18.00 per skateboard of which 60% is direct labor cost.

 Over the past year the company sold 51,000 skateboards, with the following operating results:



  Sales (51,000 skateboards) $ 1,530,000
  Variable expenses
918,000



  Contribution margin
612,000
  Fixed expenses
492,000



  Net operating income $ 120,000






Reference no: EM13567851

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