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Management isn't happy with the margins they have been making, so they have assembled a team of employees to work on reducing costs. They
Management isn't happy with the margins they have been making, so they have assembled a team of employees to work on reducing costs. They have had some success but some costs are going up. Here are the changes that are expected in the costs: Cost decrease - they were able to negotiate with Ford to purchase the F650 truck chassis for less money, a 10% reduction. Cost increase - the job market has gotten stronger so attracting employees at $20 an hour has been difficult. Labor costs are expected go up to $24 per hour for all types of employees. Overhead is allocated at 200% of DL Cost. If they anticipate a selling price of $191,241, what is their projected margin in dollars on the MAV vehicle? (Enter your answer to the nearest whole dollar and without commas or dollar signs)
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