What would the improvement in profit

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Reference no: EM131981638

1. If sales are $500,000, direct manufacturing costs are $400,000, and overhead is $50,000, what would the improvement in profit be if direct manufacturing costs were reduced to $300,000? State your answer as a percentage of change. Do not use the % sign, just the value. Round to the nearest integer.

2. Using the information in question 1, how much would sales have to increase to provide the same increase in profits? State as an integer. This is a percentage.

3. A company has average lead time of 7 weeks, annual CoGS of $1 million, and a 50 week year. What is the average value of the WIP? Round to the nearest integer. Do not use a comma anywhere in the answer nor any other sign.

Reference no: EM131981638

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