Problem:
Highlight the items which are classified as fixed cost?
- Depreciation of assembly line facilities at ford
- Shipping costs from an Amazon distribution center
- The cost of hardware installed on sailboats
- Recurring advertising costs by a physician's office
- Wages paid to temporary personnel
- Insurance on factory assembly facility
- Commissions paid to Avon representatives.
Find the gross margin
Purchases - $50,000
Freight in - $15,000
Sales - $155,000
Advertising - $25,000
Salaries - Sale staff - $82,000
Property Taxes - Store -$7,500
Insurance - Store - $12,000
Merchandise Inventory, Year end - $22,00
Find the total direct manufacturing cost
Advertising Expense $ 10,000
General & Administrative Costs 9,000
Property Taxes on Factory 10,000
Insurance on Factory Building 2,400
Material used in Production 55,000
Production Labor 47,000
Quality Control Salary 8,000
Production Supervisor Salary 8,000