Suppose that ikea the swedish retailer is developing a new, Ask an Expert

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Suppose that ikea, the Swedish retailer, is developing a new chair targeted to sell for less than $100 and it is considering the two production alternatives that follow. Rank the alternatives, assuming that the company's minimum desired profit is 30 percent over total production costs.
Alternative Alternative.

Direct material cost $35 $20
Direct labor cost 1hr at $12 per hr 2hr at $8 per hr
Overhead cost 200% of direct $2 per dollar of direct
Labor cost materials

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Accounting Basics, Accounting

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