Question 4

Spicy Tacos produces only one product, spicy tacos, with a takeaway option. Mandy, the manager has been having issues with cost control and has asked you to help rectify her problems. Mandy has aggregated all production costs for the production process including materials, labour and other overheads. Data incorporating all the factory costs incurred in the production of tacos in the last 6 months are as follows:

Month Production Total Production Costs (Units) January 22.500 $123,500 February 24.590 $131,700 March 31.250 $142,900 April 9.500 $66,000 May 19,500 $111,000 June 31.250 $140,000