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2: Manpower would like to compute the cost of employing new workers for their Middle East division in Muscat. Manpower reports the following costs information
2: Manpower would like to compute the cost of employing new workers for their Middle East division in Muscat. Manpower reports the following costs information for hiring 6 new worker to operate the division. Manpower Muscat Division Account Description Costs Supervisors salaries OMR 40,400 Contractors hourly wages 20,900 Office Supplies 7500 Computer depreciation 51,050 Office leasing space Total 11.800 OMR 131,650 a. Use account analysis to determine total fixed cost per month and the variable cost per new hire. (Hint: the first step is you need to classify each cost as variable or fixed) (RUBRIC: 0.5 mark for the calculations and 0.5 mark for correct answer. Total marks = 2 marks) b. Using the account method, develop a cost function for the new division. (RUBRIC: 0.5 mark for correct answer. Total marks = 0.5 marks) C. Using your cost function, find Total cost and total variable cost if Manpower would like to hire 4 new employees next year. (RUBRIC: 0.5 mark for the calculations and 0.5 mark for correct answer. Total marks = 1 marks)
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