Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets...


Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the<br>company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly<br>manufacturing cost and other expense data are as follows.<br>Rent on factory equipment<br>$11,600<br>Insurance on factory building<br>2,500<br>Raw materials (plastics, polystyrene, etc.)<br>79,700<br>Utility costs for factory<br>900<br>Supplies for general office<br>300<br>Wages for assembly line workers<br>63,700<br>Depreciation on office equipment<br>800<br>Miscellaneous materials (glue, thread, etc.)<br>1,200<br>Factory manager's salary<br>6,400<br>Property taxes on factory building<br>500<br>Advertising for helmets<br>14,500<br>Sales commissions<br>10,600<br>Depreciation on factory building<br>1,600<br>(a)<br>

Extracted text: Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,600 Insurance on factory building 2,500 Raw materials (plastics, polystyrene, etc.) 79,700 Utility costs for factory 900 Supplies for general office 300 Wages for assembly line workers 63,700 Depreciation on office equipment 800 Miscellaneous materials (glue, thread, etc.) 1,200 Factory manager's salary 6,400 Property taxes on factory building 500 Advertising for helmets 14,500 Sales commissions 10,600 Depreciation on factory building 1,600 (a)
(b)<br>Compute the cost to produce one helmet. (Round answer to 2 decimal places, eg. 15.25.)<br>Production cost per helmet<br>$<br>

Extracted text: (b) Compute the cost to produce one helmet. (Round answer to 2 decimal places, eg. 15.25.) Production cost per helmet $

Jun 09, 2022
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