A Company Is Currently Operating at 60% Capacity Producing 10,000

Essay

A company is currently operating at 60% capacity producing 10,000 units. Cost information relating to this current production is shown in the table below.
$$\begin{array} { | l | r | } \hline & \text { Per Unit } \\\hline \text { Sales price } & \$ 21 \\\hline \text { Direct material } & \$ 6 \\\hline \text { Direct labor } & \$ 4.12 \\\hline \begin{array} { l } \text { Variable } \\\text { overhead }\end{array} & \$ 2.23 \\\hline \text { Fixed overhead } & \$ 0.80 \\\hline\end{array}$$