ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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number 8 is already solved. I just need help with 9 and 10

Material cost = $25 per unit
Direct labor cost = 2*$20 = $40
Overhead expenses = 80% of $40 = $32
Thus, total manufacturing cost = $25 + $40 +
$32 = $97
(Note: Fixed cost are not included in
manufacturing cost)
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Transcribed Image Text:Material cost = $25 per unit Direct labor cost = 2*$20 = $40 Overhead expenses = 80% of $40 = $32 Thus, total manufacturing cost = $25 + $40 + $32 = $97 (Note: Fixed cost are not included in manufacturing cost)
8. Tech Engineering in TN is making a product for the overseas market.
The following cost data for the product has been compiled.
Item
Selling price
Materials and purchased parts
Direct Labor
Cost
$167
$25/unit
2 hrs at $20 per hour
$1,400,000
Fixed Cost
If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per
unit.
9. Using the data from Question #8, what is the breakeven volume for the product?
10. Using the data from Question #8, what is the profit per unit if 30,000 units are sold?
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Transcribed Image Text:8. Tech Engineering in TN is making a product for the overseas market. The following cost data for the product has been compiled. Item Selling price Materials and purchased parts Direct Labor Cost $167 $25/unit 2 hrs at $20 per hour $1,400,000 Fixed Cost If the overhead expenses are charged at 80 % of labor cost, determine the manufacturing cost per unit. 9. Using the data from Question #8, what is the breakeven volume for the product? 10. Using the data from Question #8, what is the profit per unit if 30,000 units are sold?
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