1.5 Flex Electronics has recorded sales of $20 million in the last year. The companys spend on...
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1.5 Flex Electronics has recorded sales of $20 million in the last year. The company’s spend on the cost of direct material was 55%, direct labor was 15%, and overhead was 25% of sales. What will be the improvement in profit if the cost of direct material is reduced to 50%?
a. What will be the profit before improvement?
b. What will be the profit after improvement?
c. How much will sales have to increase to give the same increase in profit?
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Related Book For
Introduction To Materials Management
ISBN: 9781292162355
8th Global Edition
Authors: J. R. Tony Arnold, Chapman, Stephen N., Lloyd M. Clive
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