ellPeak produces shelving units. The variable cost of each shelving unit comprises of direct materials of $30, direct labor of $7, packaging costs of $7 and variable overheads of $2. CellPeak has fixed overheads of $252513 and sells its shelving units for $75 each. Current sales are 25,000 shelving units per annum. What profit would CellPeak make if the company sold 18,000 shelving units?
ellPeak produces shelving units. The variable cost of each shelving unit comprises of direct materials of $30, direct labor of $7, packaging costs of $7 and variable overheads of $2. CellPeak has fixed overheads of $252513 and sells its shelving units for $75 each. Current sales are 25,000 shelving units per annum. What profit would CellPeak make if the company sold 18,000 shelving units?
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
Section: Chapter Questions
Problem 7MC
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CellPeak produces shelving units. The variable cost of each shelving unit comprises of direct materials of $30, direct labor of $7, packaging costs of $7 and variable overheads of $2. CellPeak has fixed overheads of $252513 and sells its shelving units for $75 each. Current sales are 25,000 shelving units per annum. What profit would CellPeak make if the company sold 18,000 shelving units?
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