Question
In: Finance
You are going to open a business making custom cabinets. You can sell each cabinet for...
You are going to open a business making custom cabinets. You can sell each cabinet for $80, It takes a cabinetmaker approximately 45 minutes to make one cabinet. Each cabinetmaker works an 8-hour day earning $18 per hour. Each cabinet uses $25 in raw materials. You usually produce cabinets 20 days a month and can employ two cabinetmakers. You estimate that your fixed costs are $5,000 per month.
Construct a break-even chart for the custom cabinet firm. (with explanation please so I can understand how to reproduce it, thank you)
Solutions
jeff jeffy answered 1 year agoRelated Solutions
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm. Purchased $80,000 of...
The following transactions occurred in April at Steve’s
Cabinets, a custom cabinet firm.
Purchased $80,000 of materials on account.
Issued $4,000 of supplies from the materials inventory.
Purchased $56,000 of materials on account.
Paid for the materials purchased in transaction (1) using
cash.
Issued $68,000 in direct materials to the production
department.
Incurred direct labor costs of $100,000, which were credited to
Wages Payable.
Paid $106,000 cash for utilities, power, equipment maintenance,
and other miscellaneous items for the manufacturing plant....
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm: Purchased $23,500 of...
The following transactions occurred in April at Steve’s
Cabinets, a custom cabinet firm:
Purchased $23,500 of materials on account.
Issued $1,550 of supplies from the materials inventory.
Purchased $12,700 of materials on account.
Paid for the materials purchased in transaction (1) using
cash.
Issued $15,100 in direct materials to the production
department.
Incurred direct labor costs of $27,500, which were credited to
Wages Payable.
Paid $22,700 cash for utilities, power, equipment maintenance,
and other miscellaneous items for the manufacturing plant....
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm: Purchased $21,500 of...
The following transactions occurred in April at Steve’s
Cabinets, a custom cabinet firm:
Purchased $21,500 of materials on account.
Issued $1,350 of supplies from the materials inventory.
Purchased $12,300 of materials on account.
Paid for the materials purchased in transaction (1) using
cash.
Issued $14,700 in direct materials to the production
department.
Incurred direct labor costs of $25,500, which were credited to
Wages Payable.
Paid $22,300 cash for utilities, power, equipment maintenance,
and other miscellaneous items for the manufacturing plant....
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm: Purchased $22,000 of...
The following transactions occurred in April at Steve’s
Cabinets, a custom cabinet firm:
Purchased $22,000 of materials on account.
Issued $1,400 of supplies from the materials inventory.
Purchased $12,400 of materials on account.
Paid for the materials purchased in transaction (1) using
cash.
Issued $14,800 in direct materials to the production
department.
Incurred direct labor costs of $26,000, which were credited to
Wages Payable.
Paid $22,400 cash for utilities, power, equipment maintenance,
and other miscellaneous items for the manufacturing plant....
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm. Purchased $80,000 of...
The following transactions occurred in April at Steve’s
Cabinets, a custom cabinet firm.
Purchased $80,000 of materials on account.
Issued $4,000 of supplies from the materials inventory.
Purchased $56,000 of materials on account.
Paid for the materials purchased in transaction (1) using
cash.
Issued $68,000 in direct materials to the production
department.
Incurred direct labor costs of $100,000, which were credited to
Wages Payable.
Paid $106,000 cash for utilities, power, equipment maintenance,
and other miscellaneous items for the manufacturing plant....
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm. Purchased $25,500 of...
The following transactions occurred in April at Steve’s
Cabinets, a custom cabinet firm.
Purchased $25,500 of materials on account.
Issued $1,750 of supplies from the materials inventory.
Purchased $13,100 of materials on account.
Paid for the materials purchased in transaction (1) using
cash.
Issued $15,500 in direct materials to the production
department.
Incurred direct labor costs of $29,500, which were credited to
Wages Payable.
Paid $23,100 cash for utilities, power, equipment maintenance,
and other miscellaneous items for the manufacturing plant....
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm: Purchased $19,500 of...
The following transactions occurred in April at Steve’s
Cabinets, a custom cabinet firm:
Purchased $19,500 of materials on account.
Issued $1,150 of supplies from the materials inventory.
Purchased $11,900 of materials on account.
Paid for the materials purchased in transaction (1) using
cash.
Issued $14,300 in direct materials to the production
department.
Incurred direct labor costs of $23,500, which were credited to
Wages Payable.
Paid $21,900 cash for utilities, power, equipment maintenance,
and other miscellaneous items for the manufacturing plant....
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm: Purchased $25,500 of...
The following transactions occurred in April at Steve’s
Cabinets, a custom cabinet firm:
Purchased $25,500 of materials on account.
Issued $1,750 of supplies from the materials inventory.
Purchased $13,100 of materials on account.
Paid for the materials purchased in transaction (1) using
cash.
Issued $15,500 in direct materials to the production
department.
Incurred direct labor costs of $29,500, which were credited to
Wages Payable.
Paid $23,100 cash for utilities, power, equipment maintenance,
and other miscellaneous items for the manufacturing plant....
The following transactions occurred in April at Steve’s Cabinets, a custom cabinet firm. Purchased $80,000 of...
The following transactions occurred in April at Steve’s
Cabinets, a custom cabinet firm.
Purchased $80,000 of materials on account.
Issued $4,000 of supplies from the materials inventory.
Purchased $56,000 of materials on account.
Paid for the materials purchased in transaction (1) using
cash.
Issued $68,000 in direct materials to the production
department.
Incurred direct labor costs of $100,000, which were credited to
Wages Payable.
Paid $106,000 cash for utilities, power, equipment maintenance,
and other miscellaneous items for the manufacturing plant....
Imagine that you are going to open your own manufacturing business, making Frozen Pizzas. a) What...
Imagine that you are going to open your own manufacturing
business, making Frozen Pizzas.
a) What sunk costs are relevant to your company? Why are
these sunk? If none are relevant, why aren’t any sunk costs
applicable to your business?
b) What opportunity costs would you consider when
deciding to open your business?
**Looking for thorough answers so I can add any new information
to what I have already written on my own**
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