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29-11-2022
Business

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In a visualization regarding the cost composition of your company’s five products, you can see the percentage of direct materials, direct labor and overhead percentages to total costs per unit. Based on this information, please answer the following questions.
1. The workers’ union is negotiating an increase in an hourly wage and an increase in health insurance coverage. If agreed by the management team, which product is more likely to be affected?

2. Assume that your company always uses the following formula to determine the markup: “direct labor to total costs percentage * 50%”. Does this make sense to you? What is the potential problem?

In a visualization regarding the cost composition of your companys five products you can see the percentage of direct materials direct labor and overhead percen class=

In a visualization regarding the cost composition of your companys five products you can see the percentage of direct materials direct labor and overhead percen class=

In a visualization regarding the cost composition of your companys five products you can see the percentage of direct materials direct labor and overhead percen class=

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