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Denton Company manufactures and sells a single product. Cost data for the product are given below:
Variable costs per unit:
Direct materials . . . . . . . . . . . . . . . . . . . . . . . . $ 7
Direct labor . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Variable manufacturing overhead . . . . . . . . . . 5
Variable selling and administrative . . . . . . . . . 3
Total variable cost per unit . . . . . . . . . . . . . . . $ 25
Fixed costs per month:
Fixed manufacturing overhead . . . . . . . . . . . . $ 315,000
Fixed selling and administrative . . . . . . . . . . . 245,000
Total fixed cost per month . . . . . . . . . . . . . . . $ 560,000
The product sells for $ 60 per unit. Production and sales data for July and August, the first two months of operations, follow:
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