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Product Description
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