Amalgamated Fenderdenter's sales are $$12$ million. The company spends $$3\mathrm{.}7$ million

for purchase of direct materials and $$3\mathrm{.}4$ million for direct labor; overhead is $$3\mathrm{.}5$ million

and profit is $$1\mathrm{.}4$ million. Direct labor and direct material vary directly with sales, but

overhead does not. The company wants to increase its profit by $50\%.$

a$)$ By how much should the firm increase annual sales?

b$)$ By how much should the firm decrease material costs?

c$)$ By how much should the firm decrease labor cost?

Amalgamated Fenderdenter's sales are $$12$ million. The company spends $$3\mathrm{.}7$ million

for purchase of direct materials and $$3\mathrm{.}4$ million for direct labor; overhead is $$3\mathrm{.}5$ million

and profit is $$1\mathrm{.}4$ million. Direct labor and direct material vary directly with sales, but

overhead does not. The company wants to increase its profit by $50\%.$

a$)$ By how much should the firm increase annual sales?

b$)$ By how much should the firm decrease material costs?

c$)$ By how much should the firm decrease labor cost?Ap