Question

The Old Balance Company has developed a new lacrosse stick that uses high-tech composite materials that provide better performance and durability. The primary cost of the new stick is direct materials, with a cost of $40. Direct labor cost is estimated to be $10 per unit, overhead is estimated to be $15 per unit, and selling and administrative expenses are estimated to be $5 per unit.

Required
If Old Balance desires a profit of $30 per unit, what is the required markup on direct materials?



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  • CreatedMarch 11, 2015
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