The Plastechnics Company Began Operations Several Years Ago

question 73

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.

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Definitions:

Numerals

Symbols used to represent numbers in a mathematical or quantitative context.

Parcel Post

A postal service for sending packages and parcels through the mail, differing in terms of weight and size regulations from regular mail services.

Accordion Fold

A method of folding paper in a zig-zag pattern, similar to the musical instrument's bellows, often used in brochures or maps.

Window Envelope

An envelope featuring a transparent panel, allowing the name and address on the document inside to be visible.