Analysis of Manufacturing Costs for Trunnion Speaker Production
This analysis breaks down the manufacturing costs for producing Trunnion Speakers, including variable costs, fixed costs, overhead costs, total costs, mark-up values, and break-even points. The detailed breakdown provides insight into cost per unit and helps in pricing decisions for achieving profitability in manufacturing operations.
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Manufacturing Cost Bus 134 The Trunnion Speaker
Variable Cost Direct Materials- $16,700 ($7,700 Stock+ 9000 Tooling) Direct Labor-$5,184 (57.5 min. per part *18/Hr) Indirect Labor-$3,500 Utilities -$15,000 (Per Month) Maintenance-$500 Total Variable Cost $42,884 Cost Per Unit $142.94 ($42,884/300 parts)
Fixed Cost Depreciation-$6,667 (80k a year / 12 months) Supervision- $28,333 (340k a year / 12 months) Rent- $16,667 (200k a year / 12 months) Total Fixed Cost- $51,666.67 Cost Per Unit- $172.22 ($51,666.67/300 parts)
Manufacturing Overhead Cost Indirect Labor- $2,000 Factory Repairs- $2,000 Factory Utilities-$15,000 Total Overhead Cost- $19,000 Cost Per Unit $63.33 ($19,000/300 parts)
Total Cost Total Variable Cost-$42,884 Total Fixed Cost-$51,666.67 Total Overhead Cost-$19,000 Total Cost-$113,551 Total Cost Per Unit-$378 ($113,551/300 parts)
Mark Up Value Total Cost Per Unit-$378 Total Mark Up Value at 20%-$75 ($378 * 20%) Total Unit Cost w/ Mark Up Value-$449.99($378+$75)
Break-Even Total Cost-$113,551 Total Unit Cost w/ Mark Up Value-$449.99 Total Unit to Break-Even -252 parts($113,551/$449.99)
