Profit costing and pricing for manufacturers
U.S. Small Business Administration, Office of Business Development, 1987 - Business & Economics - 5 pages
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25 cents 37 cents 40-percent contribution 42 cents 60 percent amount of machine approach to pricing approach to set available machine hours best price breakeven point buyer cents divided Colorado Contribution per Labor contribution percentage contribution-per Contribution-Per-Pound customers desired profit determine direct costing approach direct labor costs divided by 60 dollar contribution-per-machine-hour duct duction example fairly easy figures Formula for setting Four Layer Cake Gail Manufacturing Company given time period Hour approach Labor Hour limiting factor machine hours available manufacturing and nonmanufacturing manufacturing overhead margin market conditions material costs maximize profit ment month period nonmanufacturing overhead number old products order to maximize output overhead costs owner-manager percentage of direct Price For Product price Sensitive pricing formula proﬁt purchase raw material required contribution selling price sensitive to price set a price setting prices small manufacturer suppose Total direct costs unit sales volume unit sold units at $4 units per hour