Cottage Industries Ltd makes baskets. The fixed cost of operating the workshop for a month totals 500 . Each basket requires materials that cost 2 and takes one hour to make. The business pays the basket makers 10 an hour. The basket makers are all on contracts that stipulate if they do not work for any reason, they are not paid. The baskets are sold to a wholesaler for 14 each. a) What is the BEP for basket making for the business? b) Calculate the total cost and the total cost per basket for 150 baskets, 250 baskets and 350 baskets. Explain the results. RHEIN-WAAL HOCHSCHULE Rhine-Waal University