Customer wants to buy 1000 units for the new product C, while willing to pay only 150 per unit
Hence the Sales of the Company will be (1000*150) = 150000
Cost of the direct material decrease by 12 per unit, it means the direct material cost per unit is 138
For 1000 units the cost for the direct material is 138*1000 = 38000
For the manufacturing of the product C additional labor will be required by the company or the current workers be paid more than the initial hence assuming direct labor per unit is 2 hence ...