Final answer:
After detailed calculations, the percent of manufacturing overhead included in the selling price is 41%, which does not match any of the provided options. There may be a discrepancy with the data or the question itself.
Step-by-step explanation:
Calculating the Percent of Manufacturing Overhead
To determine the percent of manufacturing overhead included in the selling price of a spare part sold for $75 per unit, we need to account for the net profit and selling, general, and administrative expenses (SG&A), direct material costs, and direct labor costs. According to the provided data:
- Net profit + SG&A = 15% of the selling price
- Direct material costs = 20% of the selling price
- The ratio of direct material costs to direct labor costs is 1:1.20
First, calculate the direct labor costs using the ratio:
Direct Material Costs = 20% of $75 = $15
Direct Labor Costs = $15 * 1.20 = $18
Now, we can find the total of net profit, SG&A, direct material, and labor costs:
Total = Net profit + SG&A + Direct Material + Direct Labor
= (15% of $75) + $15 + $18
= $11.25 + $15 + $18
= $44.25
To find the manufacturing overhead, subtract this total from the selling price:
Manufacturing Overhead = Selling Price - Total Costs
= $75 - $44.25
= $30.75
Finally, calculate the percentage of manufacturing overhead:
Percentage of Manufacturing Overhead = (Manufacturing Overhead / Selling Price) * 100
= ($30.75 / $75) * 100
= 41%
This percentage does not match any of the options provided (a, b, c, or d), indicating that there may be an issue with the data or the question.