COST BEHAVIOR, CVP RELATIONSHIPS
With the help of your CFO, you have put together the following preliminary budget figures based on last year’s numbers for a planned production and sales level of 4,000 units per year: Building depreciation $200,000/yr. Machine operators $100,000/yr. Management staff $400,000/yr. Direct materials $4,000,000/yr. Other expenses that seem to vary based on production levels $3,000,000/yr. […]