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    lilcat's Avatar
    lilcat Posts: 1, Reputation: 1
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    #1

    May 27, 2013, 03:13 PM
    Bell Company, a manufacturer of audio systems, started its production in October 2014
    Bell Company, a manufacturer of audio systems, started its production in October 2014. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory.

    Raw materials cost for an audio system will total $75 per unit. Workers on the production lines are on average paid $14 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to $5,352 per month. Indirect materials cost $6 per system. A supervisor was hired to oversee production; her monthly salary is $3,452.

    Factory janitorial costs are $1,427 monthly. Advertising costs for the audio system will be $8,784 per month. The factory building depreciation expense is $6,468 per year. Property taxes on the factory building will be $8,940 per year.
    Assuming that Bell manufactures, on average, 1,527 audio systems per month,
    odinn7's Avatar
    odinn7 Posts: 7,691, Reputation: 1547
    Entomology Expert
     
    #2

    May 27, 2013, 03:21 PM
    Wow... looks like you've got your work cut out for you.

    Good luck... let us know how you do.

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