connect ch-18
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Listed here are the total costs associated with the 2013 production of 1,000 drum sets manufactured by DrumBeat. The drum sets sell for $514 each.
| Costs | |||||
| 1. | Plastic for casing—$17,000 | ||||
| 2. | Wages of assembly workers—$92,000. | ||||
| 3. | Property taxes on factory—$7,000 | ||||
| 4. | Accounting staff salaries—$31,000 | ||||
| 5. | Drum stands (1,000 stands outsourced)—$28,000 | ||||
| 6. | Rent cost of equipment for sales staff—$24,000 | ||||
| 7. | Upper management salaries—$205,000 | ||||
| 8. | Annual flat fee for maintenance service on factory equipment—$18,000 | ||||
| 9. | Sales commissions—$23 per unit, 1,000 units sold.
| ||||
| 10. | Machinery depreciation, straight-line—$40,000 | ||||
10 years ago
7-8
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