Using reverse analysis, what is the estimated cost (sum of labor, material and overhead) for this...
Using reverse analysis, what is the estimated cost (sum of labor, material and overhead) for this supplier to produce these chemicals?
“A supplier gives you a price of $400 for a barrel of specialized chemicals. Included in this price is a per barrel set up charge of (tooling) $40.50. The industry they are part of operates at 10% profit and 5% SGA; both profit and SGA are a percentage of the selling price.”
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Homework Answers
| Selling price | 400 |
| less: profit ( 10% of 400) | 40 |
| less: SGA ( 5% of 400) | 20 |
| Less: charge of tooling | 40.50 |
| Estimated cost of labour, material, overhead | 299.50 |
Answer is a. $299.50
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Using reverse analysis, what is the estimated cost (sum of
labor, material and overhead) for this...
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