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San Diego State University Operations And Supply Chain Management Assignment Help - Production


Question - Red Rock, Inc. mines and distributes various types of rocks. Most of the company's rock is sold to
contractors who use the product in highway construction projects. Aracely Hudson, company
president, believes that the company needs to advertise to increase sales. She has proposed a plan
to the other managers that Red Rock, Inc. spend $92,000 on a targeted advertising campaign. The
company currently sells 26,000 tons of aggregate for total revenue of $5,420,000. Other data related
to the company's production and operational costs follow:
Direct labor $1,460,000
Variable production overhead 230,000
Fixed production overhead 380,000
Selling and administrative expenses:
Variable 53,000
Fixed 327,000
Required:
A. Compute the break- ...Read More

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