Question

7. Tennis Town can manufacture tennis rackets for $39.75 each in variable raw material costs and $30.35 per racket in variable labor expense. The rackets sell for $180 each. Last year, production was 100,000 rackets. Fixed costs were $1,100,000. What were total production costs

Answer 1

Answer:

$8,110,000

Explanation:

Consider all manufacturing costs for this calculation.

Material ( $39.75 × 100,000)         $3,975,000

Labor Costs ($30.35 × 100,000)   $3,035,000

Fixed Overheads                             $1,100,000

Total production costs                    $8,110,000