Hi I need an answer of this question. Jason Timberwolf owns and operates Timberwolf Industries, a firm that makes very cheap, discounted bowling…

Hi I need an answer of this question.

Jason Timberwolf owns and operates Timberwolf Industries, a firm that makes very cheap, discounted bowling balls. Here’s the essential information on this production operation, and keep in mind that when we use the term “unit” we’re referring to each bowling ball produced by Timberwolf:

Sale price per unit                                                   $10

Variable costs per unit:

           Direct Materials                 $1

           Direct Labor                    $2

           Variable portion of Mfg OH              $3

Total variable cost per unit                    $6

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