Reference no: EM132507954
1) Labor is estimated to start at $70,000 in Year 1, increasing by 3% each year after for 7years .
Question 1: What is the labor cost for Y2, Y3, Y4, Y5, Y6 & Y7 ?
2) For the following given data
Sales Revenues $2,250.00/unit
Material Cost $795.00l unit,
Labor cost $595.00/ unit ,
Direct Fixed Cost Per Year 249,000 ,
Break-Even Quantity is 289.53,
Sales for Y1 & Y2 is at Break even.
- Variable costs will increase 2% each year, starting in Year 3.
- Sales are estimated to grow by 10%, 15%, and 20% for years 3 - 5.
Question 2: how much is the Material cost for Year 3 , Year 4 & Year 5 ?
Question 3: how much is the Labor cost for Year 3 , Year 4 & Year 5 ?
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