Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the COO, is considering hiring an extra worker, whose salary will be $54,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,000 more units per year. Currently, the selling price per unit is $25.00 and the cost per unit is $7.80.
Direct materials |
$3.50 |
Direct labor |
1.10 |
Variable overhead |
0.40 |
Fixed overhead (primarily depreciation of equipment) |
2.80 |
Total |
$7.80 |
Using the information provided, calculate the annual financial impact of hiring the extra worker.
Profit $_____ ______
Extracted text: Artisan Metalworks has a bottleneck in their production that occurs within the engraving department. Jamal Moore, the Coo, is considering hiring an extra worker, whose salary will be $54,000 per year, to solve the problem. With this extra worker, the company could produce and sell 3,000 more units per year. Currently, the selling price per unit is $25.00 and the cost per unit is $7.80. Direct materials $3.50 Direct labor 1.10 Variable overhead 0.40 Fixed overhead (primarily depreciation of equipment) 2.80 Total $7.80 Using the information provided, calculate the annual financial impact of hiring the extra worker. Profit $