Piedmont Fasteners Corporation makes three different clothing fasteners at its manufacturing facility in North Carolina. Data concerning these products appear below:
|Normal annual sales volume||100,000 units||200,000 units||400,000 units|
|Unit selling price||$1.65||$1.50||$0.85|
|Variable cost per unit||$1.25||$0.70||$0.25|
Total fixed expenses are $400,000 per year.
All three products are sold in highly competitive markets, so the company is unable to raise its prices without losing unacceptably large numbers of customers.
The company has a very effective lean production system, so there is no beginning or ending work in process or finished-goods inventories.
Respond to the following:
Be sure to include your calculations in Microsoft Excel format.
Write a 5–6-page report in Word format.
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