Consider the following situation: If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales? How much would sales have to increase to provide the same increase in profits?

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The Answer of Consider the following situation: If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales? How much would sales have to increase to provide the same increase in profits?

Consider the Following Situation: If the Cost of Manufacturing Which