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SungSam, Inc. is designing a new digital camcorder that is projected to have the following per - un costs to manufacture: Cost Categories Unit Costs
SungSam, Inc. is designing a new digital camcorder that is projected to have the following perun costs to manufacture:
Cost Categories Unit Costs
Materials costs $
Labor costs $
Overhead costs $
Total unit cost $
SungSam adds to its manufacturing cost for corporate profit.
What unit profit would SungSam realize on each camcorder? $
What is the overall cost to produce a batch of camcorders? $
What would SungSam's profit be on the batch of if historical data show that of product will be scrapped in manufacturing, of finished product will go unsold, and of product will be returned for refund?
Number of products scrapped in
Number of products unsold
Number of products returned
Total batch revenue $
Overall batch profit $
How much can SungSam afford to pay for a contract that would lock in a reduction in the unit material cost previously given? If SungSam does sign the contract, the sales price will not change.
Unit cost reduced to $
Batch cost with contract $
Difference in batch cost and contract $
So the amount SungSam can pay for the contract
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