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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?

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Answers (1)
  1. 4 May, 01:02
    0
    74.52

    Explanation:

    price = 300

    lets assume there were 100 units

    old new

    sales 30000 34500

    Gross profit 6000 7452

    Prod cost 24000 27048

    DM 6000 6600

    DL 9600 11040

    OH 8400 9408

    Total 24000 27048

    new price = 300x115% = 345

    so gross profit per unit will be = 7452/100 = 74.52
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