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Apple Inc. is planning to introduce a new product line, and the company expects to sell 1,000 units in the first quarter. Calculate the following:

  • Apple Inc. is planning to introduce a new product line, and the company expects to sell 1,000 units in the first quarter. Calculate the following:

Item

Amount ($)

Total cost of production

$800,000

Projected revenue

$2,000,000

Gross profit margin

$1,200,000

  • Requirement: Determine the percentage increase in gross profit margin if the company reduces direct labor costs by 10%.

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