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1. A company specialises in printing advertising leaflets and is in-the-process of preparing its price list. The most popular requirement is for a folded leaflet
1. A company specialises in printing advertising leaflets and is in-the-process of preparing its price list. The most popular requirement is for a folded leaflet made from a single sheet of A4 paper. From past records and budgeted figures, the following data have been estimated for a typical batch of 12,000 leaflets. Artwork GHE 130 Machine setting 8 hours at GH 44 per hour Paper Gh+25 per 2,000 sheets Ink and consumables GH 40 Printers wages 8 hours at GH+ 16 per hour General fixed overheads are GH 30,000 per period during which a total of 600 labour hours are expected to be worked. The firm wishes to achieve 30% profit on sales. Required i. Calculate the batch cost ii. Calculate the selling price per thousand leaflets for quantities of 12,000 and 24,000 leaflets. iii. Calculate the profit for the period if 64 batches of 12,000 and 36 batches of 24,000 were sold and costs and revenues were as budgeted
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