How much would sales have to increase to provide

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Reference no: EM132521714

If the cost of manufacturing (direct material and direct labour) is 60% of sales, and profit is 10% of sales,

Question (a) What would be the improvement in profit if, through better planning and control, the cost of manufacturing was reduced from 60% of sales to 50% of sales?

Question (b) How much would sales have to increase to provide the same increase in profits?

Reference no: EM132521714

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