When Lisa got an order from her neighbor to make a custom clock for $174, she ran home and estimated its cost: direct materials $51, direct labor $61, budgeted MOH $46, and other general and administrative costs $35.
How much gross margin will Lisa earn if she sells the clock for $174?
Gross margin
$
How much profit will Lisa earn? (Enter negative amount using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Profit/(Loss)
$
-19
Is she likely to go ahead with this project?
No v, sheis not likely to go ahead with this project.