Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Sharedspace Ltd make meeting room furniture that sell for 280 per set. They mark up variable costs by 60% and sell 800 units per month.
Sharedspace Ltd make meeting room furniture that sell for 280 per set. They mark up variable costs by 60% and sell 800 units per month. Sharedspace receive a bulk order to supply a refit of local government buildings at their standard price. They are asked to make a total of 2000 sets over the course of the next 3 months. The production manager believes this may be achievable using existing production facilities by running an extended shift adding 500 hours per month in overtime, but with the impact of reducing capacity for existing business to just 600 units per month. If Sharedspace want to make 135,000 in added contribution from meeting this order, what is the maximum they can pay as an overtime premium per hour, over and above standard labour cost? O 8.00 O 14.53 O 36.00 O 50.00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started