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ACCT/386 ACCT386 ACCT 386 Week 3 Homework Question 6


ACCT 386 Week 3 Homework Question 6 There may be chances that the figures given in our question and your question doesn’t matches. Don’t worry, we are here to help you. Just write to us at studentwhiz@gmail.com and your answer is with you in no time. Question 6 Tyrene Products manufactures recreational equipment. One of the company’s products, a skateboard, sells for $30. The skateboards are manufactured in an antiquated plant that relies heavily on direct labor workers. Thus, variable costs are high, totaling $21.00 per skateboard of which 70% is direct labor cost. Over the past year the company sold 53,000 skateboards, with the following operating results: Sales (53,000 skateboards) $ 1,590,000 Variable expenses 1,113,000 Contribution margin 477,000 Fixed expenses 378,000 Net operating income $ 99,000 Management is anxious to maintain and perhaps even improve its present level of income from the skateboards.


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