A company produces customary products as per the specifications of its customers wish. The cost for unit one, variable cost amounts to 4,000, labor cost 2,000 (40 hrs. @ rate of 50 hour). LC ratio will be presumed at ninety percent. Company has the policy where it will deploy only one labor for an order. Price per product to be quoted for the customer where the required contribution target is 3,000 per unit.
A company produces customary products as per the specifications of its customers wish. The cost for unit one, variable cost amounts to 4,000, labor cost 2,000 (40 hrs. @ rate of 50 hour). LC ratio will be presumed at ninety percent. Company has the policy where it will deploy only one labor for an order. Price per product to be quoted for the customer where the required contribution target is 3,000 per unit.
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 14MC: A company produces two products. E and F in batches of 100 units. The production and cost data are:...
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A company produces customary products as per the specifications of its customers wish. The cost for unit one, variable cost amounts to 4,000, labor cost 2,000 (40 hrs. @ rate of 50 hour). LC ratio will be presumed at ninety percent. Company has the policy where it will deploy only one labor for an order.
Price per product to be quoted for the customer where the required contribution target is 3,000 per unit.
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