What will be the profit before improvement

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Reference no: EM134002645

Question

Flex Electronics has recorded sales of $20 million in the last year. The company's spend on the cost of direct material was 55%, direct labor was 15%, and overhead was 25% of sales. What will be the improvement in profit if the cost of direct material is reduced to 50%?

1. What will be the profit before improvement?

2. What will be the profit after improvement?

3. How much will sales have to increase to give the same increase in profit?

Reference no: EM134002645

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