ABS engineering decided to build a new factory to produce electrical parts for computer manufacturers. Their fixed cost per month is AED 46,000 and the max production is 10,000 units per month. They estimated the material cost per unit would be 20dhs, and the labour cost will be 15dhs per unit. What will be the profit increase percentage if they set the selling price for 90DHS on max production and managed to reduce the total fixed cost by 4%-

ABS engineering decided to build a new factory to produce electrical parts for computer manufacturers. Their fixed cost per month is AED 46,000 and the max production is 10,000 units per month. They estimated the material cost per unit would be 20dhs, and the labour cost will be 15dhs per unit. What will be the profit increase percentage if they set the selling price for 90DHS on max production and managed to reduce the total fixed cost by 4%-

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 5EA: Maple Enterprises sells a single product with a selling price of $75 and variable costs per unit of...

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Suppose that a company is spending 60,000 per year for inspecting, 30,000 for purchasing, and 40,000 for reworking products. A good estimate of nonvalue-added costs would be a. 70,000. b. 130,000. c. 40,000. d. 90,000. e. 100,000.
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