XYZ Company spends 300,000 dollars on raw materials, 100,000 dollars on a fixed cost, and 150,000 dollars for employees. XYZ Company’s total sale is 700,000 dollars. Calculate the percentage of the profit change, if the XYZ is able to 2% receive a discount on the procurement for the raw materials.
XYZ Company spends 300,000 dollars on raw materials, 100,000 dollars on a fixed cost, and 150,000 dollars for employees. XYZ Company’s total sale is 700,000 dollars. Calculate the percentage of the profit change, if the XYZ is able to 2% receive a discount on the procurement for the raw materials.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 9E: Gelbart Company manufactures gas grills. Fixed costs amount to 16,335,000 per year. Variable costs...
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XYZ Company spends 300,000 dollars on raw materials, 100,000 dollars on a fixed cost, and 150,000 dollars for employees. XYZ Company’s total sale is 700,000 dollars.
Calculate the percentage of the profit change, if the XYZ is able to 2% receive a discount on the procurement for the raw materials.
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