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Please solve 9.8, 9.11, 9.16 Example 9.2 from Atrill and MeClaney Cottage industries makes baskets. The fixed costs of operating the workshop is $500 an
Please solve 9.8, 9.11, 9.16
Example 9.2 from Atrill and MeClaney Cottage industries makes baskets. The fixed costs of operating the workshop is $500 an month. Each basket requires materials which cost $2 and takes one hour to make. Labor is $10 an hour. The basket weavers are not paid if they do not work (Zero hours contract). The baskets are sold for $14 each. 1. What is the BEP each month? Activity 9.8 Cottage industries expects to make 500 baskets a month. They have an opportunity to rent a basket making machine which would increase the operating costs of the workshop to $300 a month and reduce the labor time to 0.5 hours on each basket. The basket weavers would still be paid $10 an hour. 2. How much profit would be made each month a. Without the machine b. With the machine 3. What is the BEP if the machine is rented 4. Comment on your figures Activity 9.11 Cottage industries has a target profit of $4,000 a month. What volume of activity is required? 1. Without the machine 2. With the machine Activity without a number To consider the effect of operating gearing calculate the profit of Cottage Industries with and without the machine at 500,1000 and 1,500 units. What do you notice Step by Step Solution
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