Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Given the following information: Given that the overheads are 10% of the total cost and the selling price is $ 30.00. a) How many units

Given the following information:

image text in transcribed

Given that the overheads are 10% of the total cost and the selling price is $ 30.00.

a) How many units should be sold to achieve a profit of $25,000.

b) Calculate the current % profit margin.

c) To remain competitive in the market, the company believes that it must reduce the selling price to $ 25. Recalculate the % profit margin at this price level.

d) To keep the same original % profit margin found in b, at the new reduced selling price, calculate, in hours, the required reduction in the labor hour .

Direct labor hours Direct labor cost Production material Packing costs 0.3 hour/unit $26 hour S400 per 100 items 75% of direct labor

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

EBay Sales Tracker Quick And Easy Bookkeeping System

Authors: Queen Thrift

1st Edition

B08KJ5FJND, 979-8692592774

More Books

Students also viewed these Accounting questions