2 elite industries is a division of nifco a diversified manufacturer whose divisions 4449590

2. Elite Industries is a division of Nifco, a diversified manufacturer whose divisions are profit centers. Elite makes a single product, X47, in its plant, which has a capacity of 18,000 units/month. At the normal volume of 10,000 units/month, X47 has a unit cost of $750, consisting of: direct materials, $260; direct labor, $180; overhead, $310. Manufacturing overhead has both fixed and variable components. Fixed overhead is applied at a rate of 150% of direct labor cost. Fixed selling and administrative costs are $620,000/month. Several other companies also make an equivalent product. The market price is normally $900/unit.

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