Antonio lives in houston and runs a business that sells pianos. in an average year, he receives $704,000 in revenue from selling pianos. of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totaling $286,000. he owns his showroom; if he chooses to rent it out, he will receive $3,000 in rent per year. assume that the value of this showroom does not depreciate over the year. also, if antonio does not operate this piano business, he can work as an accountant and receive an annual salary of $20,000 with no additional monetary costs. no other costs are incurred in running this piano business.

if jake's goal is to maximize his economic profit, he stay in the guitar business because the economic profit he would earn as an accountant would

Activity-based costing and product cost distortion digital storage concept inc. is considering a change to activity-based product costing. the company produces two products, cell phones and tablet pcs, in a single production department. the production department is estimated to require 4,000 direct labor hours. the total indirect labor is budgeted to be $331,200. time records from indirect labor employees revealed that they spent 60% of their time setting up production runs and 40% of their time supporting actual production. the following information about cell phones and tablet pcs was determined from the corporate records: number of setups direct labor hours units cell phones 1,600 2,000 72,000 tablet pcs 800 2,000 72,000 total 2,400 4,000 144,000 if required, round your answers to the nearest cent. a. determine the indirect labor cost per unit allocated to cell phones and tablet pcs under a single plantwide factory overhead rate system using the direct labor hours as the allocation base.