Preston Concrete is a major supplier of concrete to residential
and commercial builders in the Pacific Northwest. The company's
general pricing policy is to set prices at $128 per cubic yard.
Deliveries for 2019 were 380,000 cubic yards, and total costs
were:
Material costs
$25,536,000
Yard operation costs
$5,700,000
Administrative costs
$1,140,000
$4,218,000 of the estimated total yard operation costs were
variable, and all of the administrative costs were fixed. In
addition to the costs above, estimated fixed delivery costs...