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Nostrodame started their operations three months ago. They manufacture winter coats for Doberman dogs. They just finished their second batch of coats and are eager
Nostrodame started their operations three months ago. They manufacture winter coats for Doberman dogs. They just finished their second batch of coats and are eager to determine a cost structure for the future. The total cost per batch are provided below: Batch 1Batch 2 Quantity25 00030 000 RR Material3 000 0003 600 000 Labour5 000 0005 800 000 Indirect materials800 000860 000 Machine costs685 000760 000 Rental280 000280 000 10 690 00012 230 000 1. They are selling the coats for R420 per unit. 2. Management received a request for the next month of 40 000 coats from the Crazy Pet Store chain and another order from Cats Hyper for 10 000
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