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Question - The following cost information pertained to the Violin Division of Stringing Music Co. and was based on monthly demand and sales of 100 units:
Per-Unit Costs Variable production costs: Direct materials $320, Direct labor 350, Variable factory overhead 260, Fixed production costs: Depreciation (equipment) 220, Factory rent 248, Other 52, Total production cost $1,450, Variable selling & administrative costs $64 per unit, Fixed selling & administrative costs $76 per unit.
Given a normal selling price per unit of $1,400, what is the contribution margin per unit sold for recurring (i.e., normal) sales?
f the company decides on a 2- for- 1 split, at what price would you expect the stock to trade immediately after the split goes into effect? Why do you think Fido’s board of directors decided to split the company’s stock?
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As a project manager on a product development team for a new line of iPads for the hearing impaired, you are asked to create a product development plan that addressed items (a) through (f) below. Develop an initial cost budget for the project to meet..
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