Military Projectiles Inc. is starting to produce a new product. The company is planning to bid for
Question:
Military Projectiles Inc. is starting to produce a new product. The company is planning to bid for a long term order for this new product. They have the following data:
-First unit direct labor hours: 400hr @ $150/hr.
-First unit direct material cost: $100,000
-Cumulative direct labor hours for next nine units: 2126/hr.
-Cumulative direct material cost for next seven units: $557,400
Company expects an order of 1,600 units (including all made so far). Company expects overhead costs to be 50% of direct cost. They plan to charge $100,000 per unit. Calculate average percentage markup (or avg. percentage loss) per unit in total labor & material cost. What will be the cost of unit 1600 & 1601?
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam