What unit profit would sungsam realize on each camcorder

Reference no: EM132155576

Question: SungSam, Inc. is designing a new digital camcorder that is projected to have the following per-unit costs to manufacture:

SungSam adds 30% to its manufacturing cost for corporate profit.

(a) What unit profit would SungSam realize on each camcorder?

(b) What is the overall cost to produce a batch of 10,000 camcorders?

(c) What would SungSam's profit be on the batch of 10,000 if historical data show that 1% of product will be scrapped in manufacturing, 3% of finished product will go unsold, and 2% of sold product will be returned for refund?

(d) How much can SungSam afford to pay for a contract that would lock in a 50% reduction in the unit material cost previously given? If SungSam does sign the contract, the sales price will not change.

Reference no: EM132155576

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