(Solved):Calla Company produces skateboards that sell for $51 per unit. The company currently has the…

 

Question

Calla Company produces skateboards that sell for $51 per unit. The company currently has the capacity to produce 95,000 skateboards per year, but is selling 80,200 skateboards per year. Annual costs for 80,200 skateboards follow.

Direct materials $874,180
Direct labor $681,700
Overhead $945,000
Selling expenses $548,000
Administrative expenses $462,000
Total costs and expenses $3,510,880

A new retail store has offered to buy 14,800 of its skateboards

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