Question: In problem 1.1, how much would sales have to increase to provide the same increase in profits? In Problem If the cost of manufacturing (direct

In problem 1.1, how much would sales have to increase to provide the same increase in profits?


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If the cost of manufacturing (direct material and direct labor) is 60% of sales and profit is 10% of sales, what would be the improvement in profit if, through better planning and control, the cost of manufacturing was reduced from 60% of sales to 50% of sales?

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