Sherman, inc. manufactures chainsaws that sell for $58. each chainsaw uses $10 in direct materials and $3 in direct labor per unit. sherman has two activities: machining, which is applied at the rate of $2 per machine hour, and finishing, which is applied at the rate of $20 per batch. this month, sherman made 200 chainsaws, using 1,000 machine hours in 40 batches. what is the gross profit for one chainsaw?

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Deven Cherry

10 February, 18:39

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Walker Arroyo · Answer 1

Takes the sales revenue less the cost of goods and divide by the number of chainsaws.