Using reverse analysis, what is the estimated cost (sum of labor, material and overhead) for...
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Accounting
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.
a. $299.50
b. $340.00
c. $360.00
d. $400.00
e. None of the above
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