P19-2A Bell Company, a manufacturer of audio systems, started its production in October 2017. For the preceding 3 years, Bell had been a retailer of audio systems. After a thorough survey of audio system markets, Bell decided to turn its retail store into an audio equipment factory.

Raw materials cost for an audio system will total 

 per unit. Workers on the production lines are on average paid 

 per hour. An audio system usually takes 5 hours to complete. In addition, the rent on the equipment used to assemble audio systems amounts to 

 per system. A supervisor was hired to oversee production; her monthly salary is 

 monthly. Advertising costs for the audio system will be 

 per month. The factory building depreciation expense is 

 per year. Property taxes on the factory building will be 

Instructions (b) Compute the cost to produce one audio system.

19.PA.2b

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19.PA.2b

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