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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:
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
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