Mascot is a firm producing a line of women cloth in the high end market. A particular model, a skirt made of mohair, is coming with a leather belt with several Swakowski crystals impressed. Mascot manufactures these leather belts themselves Mascot can choose between several qualities of leather depending on how many blemishes (e.g. holes) there will be in a certain leather skin. Furthermore, Mascot knows if the leather have many blemishes, the work by cutting leather for a low quality belt will be higher. Price per m2 for leather Required leather to in DKR 145 130 105 85 70 Labor minutes required to cut one belt 12 13 15 17 20 Leather quality Very high High Medium Low Very Low produce 1 belt in m2 1.0 1.05 1.25 1.45 1.6 The price of the crystals and the buckle is DKR 235 and the salary for the people who cuts the leather belt is DKR 260 per hour. Mascot will choose the quality that gives maximum profit for the company and they are using a standard cost system Required: Calculate the current fiscal years standard quantity and standard price for the leather belt. Calculate the current fiscal years standard labor minutes and standard wage rate. The leather prices were expected to be stable during the year, but after 5 months, the vendor announced a 10% price-cut on all qualities except the very high quality. Assuming these new prices will remain stable this and the following year, calculate next financial year's standard quantity and standard price for the leather used in the belt, and the standard minutes to cut the leather Do you expect Mascot to revise the standard quantity and standard price for the leather belt in the current fiscal year? Explain why or why not! Mascot predicts to sell 1,500 units of the shirts with this leather belt this year. The selling price for one unit is 3,250 DKR including the leather belt. The sales price of the leather belt is decided to be DKR 800. Calculate Mascot's earning on this leather belt Mascot is receiving an offer from another vendor - specialized in leather work - regarding leverage of the leather belt at a price of DKR 500 each. You are asked to give your opinion on this offer discussing advantages and disadvantages a. b. c. d. e. f