Activewear manufactures Outerwear Fleeces at its plant in Westport. The garment sells for 89. Each...
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Accounting
Activewear manufactures Outerwear Fleeces at its plant in Westport. The garment
sells for 89. Each garment requires 10 of raw materials and two hours of direct
labour (costing 11 per hour). The fixed costs of the manufacturing operation are
75,000 per annum. All sales activities are outsourced for a 10% commission on
sales. No inventory is carried. What quantity of fleeces does Activewear need to
produce and sell each year to make a profit of 40,000.
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