Solution-Make calculations for all relevant costs and

Make calculations for all relevant costs and irrelevant cost

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Reference no: EM132566831

Labour Costs

The urgent-order will need 300 hours of skilled labor to complete the order. However, these skilled labor hours are currently working at full capacity in producing and selling a current product that has a contribution to sales ratio (C/S ratio) of 40%, a selling price is $500 per unit, labor rate of $20 per hour and the labor cost is $100.00 per unit. The company has an option to either hire the 300 hour externally at a higher rate of $30.00 per hour or to take the 300 hours from current product.

Question 1: Make calculations for all relevant costs and irrelevant costs related to the urgent-order of Coved Ltd.

Reference no: EM132566831

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Make calculations for all relevant costs and irrelevant cost

Reference no: EM132566831

Reference no: EM132566831

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