The metal product company produces a sewing machine that sells for Rs.300. An increase of 15%...
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The metal product company produces a sewing machine that sells for Rs.300. An increase of 15% in cost of material and 10% in cost of labour is anticipated. If the only figures available are those given below. What must be the selling price to give the same percentage of profit as before? A) Material cost has been 45% of cost of sales. B) Labour cost has been 40% of cost of sales. C) Overheads costs have been 15% of cost of sales. D) The anticipation increased cost in relation to the present sales price would cause 35% decrease in the present gross profit. The metal product company produces a sewing machine that sells for Rs.300. An increase of 15% in cost of material and 10% in cost of labour is anticipated. If the only figures available are those given below. What must be the selling price to give the same percentage of profit as before? A) Material cost has been 45% of cost of sales. B) Labour cost has been 40% of cost of sales. C) Overheads costs have been 15% of cost of sales. D) The anticipation increased cost in relation to the present sales price would cause 35% decrease in the present gross profit.
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Related Book For
Managing Operations Across the Supply Chain
ISBN: 978-0078024030
2nd edition
Authors: Morgan Swink, Steven Melnyk, Bixby Cooper, Janet Hartley
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