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Problem 4 Rush Industries, Inc. builds partsfor large has determined that sales are dwinding for the firm's products because automated heavy equipment. The Vice President
Problem 4 Rush Industries, Inc. builds partsfor large has determined that sales are dwinding for the firm's products because automated heavy equipment. The Vice President for of aggressive pricing by the product for $775 whereas he competition's comparable part is seling ring has determined that a price drop to $62s is necessary to regain market Rush Industries sells t in the $650 range. The VP for Marketing share and annual sales of 1,200 units Data based on sales of 1,200 units is as follows Budgeted Amount Direct materials (sheet metal) $ 9.66 per sq.ft. 8,000 sq.ft 10,000 sq.t 5,000 hrs 2,800 hrs. Direct labor 33.60 per hour 4,800 hrs 2,600 hrs. Machine setups 42.00 per hour 34.00 per hour Mechanical assembly 3,600 hrs. 3,200 hrs 1. The current cost per unit is $625.00 a. b $420.50 c $380.47 d. $119.26 lfa profit per unit of 40% is desired, the target cost would be 2. a. $465.00 b. $375.00 c. $250.00 d. $345.00 3. The current profit per unit is a. $354.50 b. $150.00 c. $655.74 d. $394.53
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