Barkov Industries makes an electronic
component in two departments, Machining and Assembly. The
capacity per month is 60,000 units in the Machining Department and
50,000 units in the Assembly Department. The only variable
cost of the product is direct material of $200 per unit. All
direct material cost is incurred in the Machining Department.
All other costs of operating the two departments are fixed
costs. Barkov can sell as many units of this electronic
component as it produces at a selling price of $500 per unit.
Required:
Barkov Industries makes an electronic component in two departments, Machining and Assembly. The capacity per month is 6
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