How much should sales be, Direct labor and direct material

How much should sales be

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Reference no: EM133298943

Question: Capital Auto's sales are $15.5 million. The company spends $5.25 million for purchase of direct materials and $3.75 million for direct labor; and overhead is $5.25 million. Direct labor and direct material vary directly with sales, but overhead does not. However, if annual sales exceed $17 million, overhead will be $6.0 million. If the company wants to double its profit, how much should sales be?

Reference no: EM133298943

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