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MY QUESTION is only for Part C. Why are they still dividing by 2000? Shouldn\'t

ID: 2334408 • Letter: M

Question

MY QUESTION is only for Part C. Why are they still dividing by 2000? Shouldn't it be by 2500?

14. a. and b Cardboard boxes ($1,000 ÷ 2,000) Mallets ($12,000 - 4,000) Croquet balls ($9,000 12,000) Wire hoops (S3,600 24,000) Production worker wages ($8,400 2,000) Supervisor's salary ($2,600 :2,000) Building and equipment rental ($2,800 - 2,000) Utilities ($1,300 - 2,000) Total Per Unit Per Set S0.50S 0.50 6.00 4.50 1.80 4.20 1.30 1.40 0.65 $20.35 3.00 0.75 0.15 Estimated cost per set in March is Cardboard boxes (S1,000 - 2,000) Mallets ($12,000 - 4,000; $3 x 2) Croquet balls ($9,000 12,000; $0.75 x 6) Wire hoops (S3,600 24,000; S0.15 x 12) Production worker wages ($8,400 2,000) Supervisor's salary ($2,600 2,500) Building and equipment rental ($2,800 + 2,500) Utilities ($1,400 2,500) Total c. S0.50 6.00 4.50 1.80 4.20 1.04 1.12 0.56 $19.72

Explanation / Answer

This is so because the data provided for month of feb is based on 2000 sets ,so in order to calculate cost per set (in per unit ),we have to divide it by 2000 sets ,as variable cost remain same in per unit .

So say if $1000 worth of cardboard boxes is used to make 2000 sets ,it means it cost 1000/2000 =$ .50 per set

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