Question
D Question 25 5 pts Broome Industries, Inc. builds a part for industrial equipment. The marketing director has determined that sales are dwindling for the
D Question 25 5 pts Broome Industries, Inc. builds a part for industrial equipment. The marketing director has determined that sales are dwindling for the firm's products because of aggressive pricing by competitors. Broome industries sells the product for $850 whereas the competition's comparable part is selling in the $775 range. The marketing director has determined that a price drop to $735 is necessary to regain market share and monthly sales of 2,000 units. Data based on sales of 2,000 units is as follows: Direct materials (sheet metal) Direct labor Machine setups Mechanical assembly Problem 4-3 The current profit per unit is $270.25 O $230.25 O $409.00 $345.25 Budgeted Amount Actual Amount Cost 12,000 sq.ft. 15,000 sq.ft. $28.00 per sq.ft. 5,600 hrs. 6,000 hrs 34.00 per hour 3,500 hrs. 3,800 hrs 60.00 per hour 4,800 hrs. 4,500 hrs 35.00 per hour
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