MIUPI companies produce lanyards (cord). The cost of making a unit of product is $ 1.00 for direct materials, $ 0.50 for indirect labor, $ 1.25 for variable indirect costs. Indirect fixed overhead costs total $ 100,000. Commissions to sellers are $ 0.20 per unit sold. Other variable administrative and sales costs total $ 0.05 per unit. Fixed selling and administrative expenses total $ 200,000. The company taxes its earnings at 40%. Each unit sells for $ 5.00. 100. Management is considering increasing the vendors total cost of salary by $ 2,000, there are 4 vendors and eliminating the commission. Determine the new breakeven point and select which is best for the company, commission to sellers
MIUPI companies produce lanyards (cord). The cost of making a unit of product is $ 1.00 for direct materials, $ 0.50 for indirect labor, $ 1.25 for variable indirect costs. Indirect fixed
100. Management is considering increasing the vendors total cost of salary by $ 2,000, there are 4 vendors and eliminating the commission. Determine the new breakeven point and select which is best for the company, commission to sellers
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