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ACC 550 Hampshire Company Case Study
Section I: Cost-Volume-Profit Analysis
The Hampshire Company manufactures umbrellas that sell for $ 12.50 each. In 2014, the company made and sold 60,000 umbrellas. The company had fixed manufacturing costs of $ 216,000. It also had fixed costs for administration of $ 79,525. The per-unit costs of each umbrella are as follows:
Direct Materials: $ 3.00
Direct Labor: $ 1.50
Variable Manufacturing Overhead: $ 0.40
Variable Selling Expenses: $ 1.10