Problem
Your CEO has asked you to prepare a production cost budget for the MiniY for May 20X8. The actual costs in April 20X8 were:
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MiniY: Production Cost Budget
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April 20X8
|
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Production-Units of MiniY
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3,000
|
|
Components cost (variable)
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24,000,000
|
|
Labor cost (variable)
|
13,500,000
|
|
Rent (fixed)
|
6,000,000
|
|
Depreciation (fixed)
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6,000,000
|
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Other (fixed)
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2,000,000
|
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Total
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$51,500,000
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For the month of May, the number of MiniY produced will increase to 3,200, reflecting an anticipated sales increase related to a new marketing campaign.
Using the above information, prepare a budget for May 20X8 stating the total cost. Use a spreadsheet to display your data and calculations.