A company's income statement for FY23 contains the following information (in $ Million): Revenue 500 COGS 300
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Question:
A company's income statement for FY23 contains the following information (in $ Million):
Revenue | 500 |
COGS | 300 |
SGA&O | 100 |
Profit | 60 |
It is estimated that 20% of COGS and 10% of SGA&A are Throughput Costs (vary with throughput), and the rest are Capacity Costs (fixed with respect to throughput). The throughput is 100,000 units per year.
- What will be the increase in profit if throughput increases by 0.5%?
Related Book For
International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
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