DATA INPUT
Monthly capacity 2500 cabanas per month
Current production 1875 cabanas per month
1875
Price per cabana 525.00$
Variable Costs
Manufacturing
Direct Labor 281,250$
Direct Material 196,875$
Marketing 140,625$
Total Variable Costs 618,750$
Fixed Costs
Manufacturing 206,250$
Marketing 131,250$
Total Fixed Costs 337,500$
Total Costs 956,250$
Variable cost per unit 330.00$
Fixed cost per unit 180.00$
Average unit cost 510.00$
Special Order
625 cabanas ordered
$300 per cabana
SOLUTION
Combined Production
Units produced 1875 625 2500
Variable costs:
Direct labor 281,250$ 93,750$ c375,000$
Direct material 196,875$ 65,625$ d262,500$
Marketing 140,625$ –$ 140,625$
Total Variable Costs 618,750$ 159,375$ 778,125$
Fixed Costs
Manufacturing 206,250$ –$ 206,250$
Marketing 131,250$ –$ 131,250$
Total Fixed Costs 337,500$ –$ 337,500$
Total Costs 956,250$ 159,375$ 1,115,625$
Income before tax 28,125$ $28,125 56,250$
Cost per units
Variable e330.00$ 255.00$ 311.25$
Average unit cost g510.00$ 255.00$ 446.25$
Current Monthly Production
Special Order