The Plastechnics Company Began Operations Several Years Ago

Essay

The Plastechnics Company began operations several years ago.The company's product requires materials that cost $25 per unit.The company employs a production supervisor whose salary is $2,000 per month.Production line workers are paid $15 per hour to manufacture and assemble the product.The company rents the equipment needed to produce the product at a rental cost of $1,500 per month.The building is depreciated on the straight-line basis at $9,000 per year.
The company spends $40,000 per year to market the product.Shipping costs for each unit are $20 per unit.
The company plans to liquidate several investments in order to expand production.These investments currently earn a return of $8,000 per year.
Required:
Complete the answer sheet below by placing an "X" under each heading that identifies the cost involved.The "Xs" can be placed under more than one heading for a single cost,e.g. ,a cost might be a sunk cost,an overhead cost,and a product cost.