How many workstations to produce

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Problem

Santana Rey expects sales of Business Solutions' line of computer workstation furniture to equal 300 workstations (at a sales price of $3,000 each) for 2028. The workstations' manufacturing costs include the following. Direct materials $ 800 per unit Direct labor $ 400 per unit Variable overhead $ 100 per unit Fixed overhead $ 24,000 per year Selling and administrative expenses for these workstations follow. Variable $ 50 per unit Fixed $ 4,000 per year Santana is considering how many workstations to produce in 2028. Business Solutions should be able to sell any workstations in its 2028 ending inventory during 2029. Get the instant assignment help. However, Santana does not want to overproduce and incur unnecessary costs for storage.

Reference no: EM133978080

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