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What quantity of fleeces does active wear need to produce

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Question - Active wear manufactures Outerwear Fleeces at its plant in Westport. The garment sells for €89. Each garment requires €10 of raw materials and two hours of direct labour (costing €11 per hour). The fixed costs of the manufacturing operation are €75,000 per annum. All sales activities are outsourced for a 10% commission on sales. No inventory is carried. What quantity of fleeces does Active wear need to produce and sell each year to make a profit of €40,000.

Reference no: EM133185325

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