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John quit his job at State University where he earned $55.000 a year. He also did some consulting on the side for an additional $15,000 a year. To start the business, he cashed in $100,000 in bonds that had earned 5% Interest annually to buy a software company. In the first year, the firm sold 10,000 units of software at $30 for each unit. John's costs of production are, 10.000 for packaging, 100,000 for marketing, 400,000 for employee wages and benefits, and 90,000 for rent on a bullding.
Problem 1: What is John's explicit cost?
Production costs for the month - materials - $54,300 labor; - $25,400; overhead - $34,600Units completed and transferred to finished goods - 18,000Work in process, end of month - 5,000 units; 40% completed
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Cecil Green sells golf hats. He knows that most people will not pay more than $20 for a golf hat. Cecil needs a 40% markup on cost. What should Cecil pay for his golf hats? Round to the nearest cent.
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