This is the only product that the company produces and sells. The selling price is $200...

Transcribed Image Text:

This is the only product that the company produces and sells. The selling price is $200 per unit. The direct materials cost is $60 each. The labor cost for each cable is $40. AAA also incurs other expenses such as rent, insurance, salary for the manager, totaling $20,000. QUESTION 1 It has been estimated that we will sell 500 units in this coming year. Additionally, if we can reduce fixed costs by 10%, how much extra profit will we be making by reducing the fixed cost by 10% QUESTION 2 It has been estimated that we will sell 500 units in this coming year. Additionally, if we can reduce variable cost by 10%, how much extra profit will we be making by reducing the variable cost by 10% This is the only product that the company produces and sells. The selling price is $200 per unit. The direct materials cost is $60 each. The labor cost for each cable is $40. AAA also incurs other expenses such as rent, insurance, salary for the manager, totaling $20,000. QUESTION 1 It has been estimated that we will sell 500 units in this coming year. Additionally, if we can reduce fixed costs by 10%, how much extra profit will we be making by reducing the fixed cost by 10% QUESTION 2 It has been estimated that we will sell 500 units in this coming year. Additionally, if we can reduce variable cost by 10%, how much extra profit will we be making by reducing the variable cost by 10%

Answer rating: 100% (QA)

Selling Price 200 Perumit Direct Material Cost 60 Jurit Labor Cost 40 lunit Fixed cost 20000 Sale ... View the full answer