If the Cost of Manufacturing Which Includes Direct Material and Direct

question 27

Short Answer

If the cost of manufacturing which includes direct material and direct labor is 70% of sales and profit is 10% of sales, what would be the improvement in profit, if through your better planning and control, the cost of manufacturing was reduced from 70% of sales to 50% of sales?

Identify the critical risks and assumptions in business planning.

Distinguish the various sections of a business plan and their purposes.

Recognize the importance of the marketing plan section and how it ties to sales and distribution strategies.

Understand the operational aspects of a business, including manufacturing, facilities, and labor force requirements.

---

Definitions:

Rotor Bars

Metal bars placed in the rotor of an induction motor that conduct current and interact with the magnetic field to create rotation.

Power Factor

A measure of how effectively electrical power is converted into useful work output, with a range from 0 to 1.

Reactance

The opposition that inductors and capacitors present to the flow of alternating current, characterized by its effect on the phase of the current.