(Solved):Simpson Company manufactures and sells trophies for winners of athletic and other events. Its…

 

Question

Simpson Company manufactures and sells trophies for winners of athletic and other events. Its manufacturing plant has the capacity to produce 20,000 trophies each month; current monthly production is 19,100 trophies. The company normally charges $42 per trophy. Cost data for the current level of production are shown below:

Variable Costs:

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Direct Materials $270,940