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please questions a b c d A) Marriot Ltd makes boxes. The fixed cost of operating the workshop for a month total 400. Each box
please questions a b c d
A) Marriot Ltd makes boxes. The fixed cost of operating the workshop for a month total 400. Each box requires materials that cost 4 and takes one hour to make. The business pays the basket makers 20 an hour. The box makers are all on contracts such that if they do not work for any reason, they are not paid. The baskets are sold to a wholesaler for 40 each. Marriot Ltd expects to sell 600 boxes a month. B) The business has the opportunity to rent a box-making machine. Doing so would increase the total fixed cost of operating the workshop for a month to 6,000. Using the machine would reduce the labor time to half an hour per box. The box makers would still be paid 20 an hour. Marriot Ltd expects to sell 600 boxes a month. (a) How much profit would the business make each month from selling boxes: - without the machine; and with the machine? (b) What is the BEP in both situations? (c) find contribution margin ratio (d) find margin of safety Step by Step Solution
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