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SungSam, Inc. is designing a new digital camcorder that is projected to have the following per-unit costs to manufacture: Cost Categories Unit Costs Materials costs
SungSam, Inc. is designing a new digital camcorder that is projected to have the following per-unit costs to manufacture: Cost Categories Unit Costs Materials costs $ 63 Labor costs $ 24 Overhead costs $110 Total unit cost $197 SungSam adds 36% to its manufacturing cost for corporate profit. 1. What unit profit would SungSam realize on each camcorder? $ 70.92 2. What is the overall cost to produce a batch of 10,000 camcorders? $ 1970000 3. What would SungSam's profit be on the batch of 10,000 if historical data show that 1% of product will be scrapped in manufacturing, 3% of finished product will go unsold, and 2% of sold 156 product will be returned for refund? 1. Number of products scrapped in mfg = 2. Number of products unsold = 3. Number of products returned = 4. Total batch revenue = $ 5. Overall batch profit = $ 4. How much can SungSam afford to pay for a contract that would lock in a 44% reduction in the unit material cost previously given? If SungSam does sign the contract, the sales price will not change. 1. Unit cost reduced to = $ 2. Batch cost with contract = $ 3. Difference in batch cost w/o and w/ contract = $ 4. So the amount SungSam can pay for the contract = $
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