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 60
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