Xminus-Industries manufactures 3minus-D printers. For each unit, $ 3 comma 200$3,200 of direct material is used and there is $ 2 comma 300$2,300 of direct manufacturing labor at $ 15$15 per hour. Manufacturing overhead is applied at $ 18$18 per direct manufacturing labor hour. Calculate the profit earned on 4242 units if each unit sells for $ 10 comma 800$10,800.

Profit = $106,682.52

Explanation:

Giving the following information:

Unitary Variable costs:

Direct material = 3,200

Direct labor = $2,300 ($15 per hour) = 153.33 hours

Manufacturing overhead is applied at $18 per direct labor hour.

Units sold = 42

Selling price = $10,800

Profit = Total sales - total variable cost

Profit = 42*10,800 - (3,200 + 2300 + 18*153.33) * 42 = $106,682.52