Camberland Metal industry - case summary
Report objective: Analyze the case of Camberland metal industries, and identify the following 5 particular issues.
1.What is the approximate cost of producing the curled metal pads?
Usually costs take two forms, fixed and variable. Of the two forms, fixed costs do not vary with production or sales revenue. In this case, the fixed component of the estimate of pad costs (exhibit 6) is unreasonable because of the assumption by which the fixed charge must equal to 360% of direct labor to cover the overhead of its large engineering staff. Besides, to the new product, little engineering had bee…
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