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(d) Cal's Fast Food, which operates on Long Beach, prepares two types of sandwiches - the luxury and the standard. The luxury sandwich has a

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(d) Cal's Fast Food, which operates on Long Beach, prepares two types of sandwiches - the luxury and the standard. The luxury sandwich has a wide variety of fillings, while the standard sandwich is either cheese or flying fish. Cal currently pays its workers using the piece rate system Present annual production: - Luxury sandwiches 300 000 units Standard sandwiches 450 000 units Cost (piece rate) per sandwich: Luxury $0.25 Standard $0.18 0 Calculate the cost of producing 300 000 units of luxury sandwiches and 450 000 units of standard sandwiches under the piece rate system. 15 marks Under the present system, Cal employs 30 persons with a normal working week of 40 hours. However, for 8 weeks in the summer, when demand is high, overtime is paid at $2.50 per hour in addition to the normal piece rate. Weekly production during the summer (8 weeks) Luxury sandwiches 20 000 units Standard sandwiches 24 000 units Estimated labour time per sandwich Luxury 3.00 minutes Standard 2.00 minutes () Calculate the total number of hours worked during summer. 15 marks! (iii) Calculate the overtime hours worked per week during the summer. 13 marks! (iv) Calculate the additional pay for labour over the 8 weeks of the summer. [3 marks

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