Question
Drew who is a watch enthusiast is making a large batch of custom-made Seiko 5 watches with the following per-unit manufacturing costs. He is aiming
Drew who is a watch enthusiast is making a large batch of custom-made Seiko 5 watches with the following per-unit manufacturing costs. He is aiming for a 25% profit on top of the total cost of the finished product. 1) How much would the total cost be if he makes 100,000 watches? 2) How much will the net profit per-unit be if there are no product losses during the manufacturing. 3) How much will the total profit on the batch of 100,000 units be if 1% of the products get damaged and discarded during the manufacturing process, 1.5% of the finished product remains unsold, and 1.3% of the products gets returned for refund after they are sold.
Materials and consumables : 289 (cost per unit $ Overhead and miscellaneous: 130 (cost per unit $) Direct labour: 200 (cost per unit $)
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