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GMM's latest period simplified income statement in $millions sales 15 direct material 5.2 direct labor 5 overhead 3 total COGS 13.2 Gross profit 1.8 GMM
GMM's latest period simplified income statement in $millions sales 15 direct material 5.2 direct labor 5 overhead 3 total COGS 13.2 Gross profit 1.8 GMM wants to double its profit. assume that direct material and labour costs vary directly with sales but overhead is constant. Question: 1 sales increased by? 2 material cost decrease by? 3 conclusion about profit.
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