This Question: 2 pts3 of 13 (0 complete) This Quiz: 20 pts po.. Suppose Steel Ha

Question

This Question: 2 pts3 of 13 (0 complete) This Quiz: 20 pts po.. Suppose Steel Handles manufactures cast iron skillets. One model is a 10-inch skillet that sells for $26. Steel Handles projects sales of 650 10-inch skillets per month. The production costs are $10 per skillet for direct materials, $2 per skillet for direct labor, and $4 per skillet for manufacturing overhead. Steel Handles has 45 10-inch skillets in inventory at the beginning of July but wants to have an ending inventory equal to 30% of the next month's sales. Selling and administrative expenses for this product line are $1,100 per month. How many 10-inch skillets should Steel Handles produce in July? OA. 650 skillets O B. 845 skillets OC. 890 skillets O D. 800 skillets

Explanation / Answer

Calculate production unit :

Production units = 650+(650*30%)-45 = 800

So answer is d) 800 Skillets

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.