Problem 20: In the year 2001, product A was sold. for $300 per unit making a gross profit of 20% on sales. The total
production cost was made up of 25% of direct material, 40%
of direct labor, and 35% of factory overhead. Due to general
rise in prices in 2002, the selling price of the product
increased by 15%. The cost of production has also increased
resulting in increase of Material, Labor, and factory overhead
costs by 10%, 15%, and 12% respectively. What will be the
gross profit per unit in 2002?

74.52

Explanation:

price= 300

lets assume there were 100 units

                             old              new

sales                     30000         34500

Gross profit          6000           7452

Prod cost              24000        27048  

DM                     6000            6600

DL                       9600           11040

OH                     8400           9408

Total                   24000        27048

new price= 300x115% = 345

so gross profit per unit will be = 7452/100 = 74.52

answer; engaging in effective public relations;

the correct answer is d. wealthy colonists to take care of the less fortunate. hope this