Accounting Unit 3 Individual Project Manufacturing Purchasing Direct labor$35 Direct labor$3.50 material$30 Overhead costs$1.

50 Overhead$15 Direct material$6 Total$80 Total$11 Question 2 sales price per pair$80 target sales$10,000 binding price per pair$11 total purchase$105,000 binding costs when bindings are purchased$215,000 gross profit$800,000 net profit$585,000 Maximum purchase price$20 Question 3 manufacturing Purchasing Sales volume$12,500 Sales volume$12,500 equipment$10,000 Binding cost per pair$10.50 Total costs for manufacturing$1,010,000 Other costs per pair$11 Total costs$268,750 Question 4 One important factor they should consider is the quality of the bindings. The company should compare manufactured bindings to purchased bindings. They should choose the better quality. Another significant factor is time consumed in manufacturing the bindings. If too much time is consumed in manufacturing the bindings, the compare should purchase them.

This will increase productivity of the workers, since the saved time will be used in other areas of production (Hogget et al, 2008). It is also vital for the company to collect views and opinions from customers. They should greatly contribute to the choice of the bindings to be used on the skis.


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