Reference no: EM132640701

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity).

Ohno's monthly manufacturing cost and other expense data are as follows.

Rent on factory equipment$11,900

Insurance on factory building2,300

Raw materials (plastics, polystyrene, etc.)80,500

Utility costs for factory1,000

Supplies for general office300

Wages for assembly line workers67,000

Depreciation on office equipment800

Miscellaneous materials (glue, thread, etc.)1,200

Factory manager's salary6,600

Property taxes on factory building500

Advertising for helmets14,500

Sales commissions10,500

Depreciation on factory building1,700

Problem 1: Compute the cost to produce one helmet