Business

Khloe Guzman

3 May, 23:13

Problem 20: In the year 2001, product A was sold. for $300 per

unit making a gross profit of 20% on sales. The total

production cost was made up of 25% of direct material, 40%

of direct labor, and 35% of factory overhead. Due to general

rise in prices in 2002, the selling price of the product

increased by 15%. The cost of production has also increased

resulting in increase of Material, Labor, and factory overhead

costs by 10%, 15%, and 12% respectively. What will be the

gross profit per unit in 2002?