Your Boss Asked You to Estimate the Required Number of Units

question 2

Short Answer

Your boss asked you to estimate the required number of units sold to achieve a profit of
$26,500 per year. Currently, the product is sold at $1800 per unit. You have collected the following information: $$\begin{array} { | l | l | } \hline \text { Cost Elements } & \text { Cost Rate } \\\hline \text { Direct labor } & \begin{array} { l } 40 \text { hours per batch of } 60 \\\text { units }\end{array} \\\hline \text { Direct labor costs } & \$ 60 \text { per hour } \\\hline \text { Material costs } & \$ 5100 \text { per batch of } 60 \text { units } \\\hline \text { Overhead costs } & 125 \% \text { of direct labor } \\\hline \text { Quality control } & 45 \% \text { of direct labor } \\\hline \text { Packaging and shipping } & \$ 33 \text { per unit } \\\hline\end{array}$$ If the units sold must account for total production costs and desired profit, how many units of production would you recommend to your boss?

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Definitions:

Freudian Approaches

Psychological theories and treatments developed by Sigmund Freud, emphasizing unconscious processes and childhood experiences.

Distortion

The alteration of reality or perception in a way that leads to misconception or a skewed understanding.

Denial

A defense mechanism where an individual refuses to accept reality or facts, thereby avoiding facing uncomfortable truths.

Psychological Protections

Mechanisms or strategies used by individuals to defend themselves against perceived threats to their emotional well-being or self-esteem.