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Title: Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed Post by: jerico on Mar 13, 2015 Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed as follows:
T-SHIRTS SWEATSHIRTS Production and sales volume 60,000 units 35,000 units Selling price $16.00 $29.00 Direct material $ 2.00 $ 5.00 Direct labor $ 4.50 $ 7.20 Manufacturing overhead $ 2.00 $ 3.00 Gross profit $ 7.50 $13.80 Selling and administrative $ 4.00 $ 7.00 Operating profit $ 3.50 $ 6.80 What is the projected decline in operating income if the direct materials costs of T-Shirts increase to $3.50 per unit and direct labor costs of Sweatshirts increase to $13.00 per unit? A) $293,000 B) $90,000 C) $203,000 D) $473,000 Title: Re: Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analy Post by: cyborg on Mar 19, 2015 Content hidden
Title: Re: Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed Post by: jerico on Mar 23, 2015 This solved my problem perfectly, thank you for your kind input.
Title: Re: Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product profitability is analyzed Post by: cyborg on Mar 23, 2015 Sweet, you're welcome.
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