Solow Company was just awarded a patent on a highly-specialized device. The engineer has set a strict production guideline. After making a mind-range plan for the company, the company expects the following for the next 2 years
Selling price per unit:$130
Variable costs per unit:
Direct materials:$10
Direct Labor: $30
Variable overhead:$6
Fixed factory overhead cost per year: ?
Selling and administrative expense per year (all fixed): $14600
Year 1 2
Production(units) 2000 2000
Sales(Units) 1500 2500
Income(Absortion Costing) $45100 $84900
what is the fixed factory overhead cost per year?
a. $206000
b. $66300
c. $88400
d. $103000
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