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More info Market research shows that for the deluxe rim to provide a reasonable profit, Eason will have to meet a target manufacturing cost of
More info Market research shows that for the deluxe rim to provide a reasonable profit, Eason will have to meet a target manufacturing cost of $625.00 per rim. A value engineering study by Eason's employees suggests that modifications to the finishing process could cut finishing cost from $90.00 to $60.00 per hour and reduce the finishing direct labor hours per deluxe rim from 5.5 hours to 5.0 hours. Direct materials would remain unchanged at $48.00 per rim, as would direct labor at $52.00 per rim. The materials handling, machine setup, and insertion of parts activity costs also would remain the same
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