Question
Your company makes mobile phones. Your direct material costs are $1,000,000 annually, your direct labour costs are $2,000,000, your overhead costs are $700,000 and
Your company makes mobile phones. Your direct material costs are $1,000,000 annually, your direct labour costs are $2,000,000, your overhead costs are $700,000 and your net profit margin is 15% of sales. If the company sells 10,000 units, how much does it cost to make one mobile phone? Is this in line with the industry average?
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
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