Connelly Incorporated, a manufacturer of quality electric ice cream makers, has experienced steady growth in sales over the past year to maintain the company's growth. To prepare for the growth, the accountant prepared the following data for the current year:
Variable costs per ice cream maker:
Direct labor: $13.5
Direct materials: $14.5
Variable overhead: $6.0
Total variable costs: $34.0
Fixed costs:
Manufacturing: $82,500
Selling: $42,356
Administrative: $480,500
Total fixed costs: $605,356
Selling price per unit: $67.00
Expected sales (units): 30,000