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A company produces customary products as per the specifications of its customers wish. The cost for unit one, variable cost amounts to 4,000, labor cost
A company produces customary products as per the specifications of its customers wish. The cost for unit one, variable cost amounts to 4,000, labor cost 2,000 (40 hrs. @ rate of 50 hour). LC ratio will be presumed at ninety percent. Company has the policy where it will deploy only one labor for an order. Price per product to be quoted for the customer where the required contribution target is 3,000 per unit.
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