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Homework answers / question archive / The company GP operates in the automotive sector and produces two different models of seat belts
The company GP operates in the automotive sector and produces two different models of seat belts. Please, consider the following information. 1. Mod. 1 Mod. 2 0.1 5 0.9 8 20 Exhibit 1 Raw material KG (phis. Std per o.2 unit) Raw material Euro/KG (mon. 5 Std per unit) Direct man labor hours (phis. 2.5 Std per unit) Direct man labor Euro/hours (mon. Std per unit) Commissions (% of selling 5% price) Selling price per unit Selling quantity (Units) 35,000 Advertising expenses (Euro) 200,000 Administrative staff costs 70,000 (Euro) Manufacturing overhead 160,000 (Euro) 7% 50 70 55,000 230,000 68,000 Draw up the operational income statement (identifying the contribution margin) for each production line using the scheme that highlights the CM.
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