Respuesta :
Answer:
Explanation:
Total Marginal Cost of each bracelet is:
Direct materials. $84.00
Add: Direct labor $45.00
Add: Variable Portion. $4.00
Add: Additional Filigree
Materials. $2.00
Total. $135.00 per bracelet
Sales Price - Marginal Cost = $169.95 - $135.00 = $34.95 per bracelet
Total price of 20 bracelet = $18.95 × 20
= $699.00
Total Operating Income before accounting for the special tool that cost, $250.00
= $699.00 - $250.00
Total operating income = $449.00
Note that the remaining fixed maintenance overhead ($16) was not subtracted because manufacturing costs represent only the expenses necessary to make the product unlike production cost.
