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Could you, please, explain the following:
if sales are to be increased by 15%, labour will be paid an extra 50% on the top of the normal rate. The Revision kit gives the solution:
110 000 + ( 110 000*0.15*1.5) = 134 750
Why is 15% accounted as 0.15 instead of 1.15?
(2015 Bpp RK p. 24, question 18.6)
Thank you in advance!
The question says that the extra shift (i.e. only the extra 15% work) will be paid an extra 50% an hour.
So the new total cost will be the current $100,000 plus 50% extra on the extra 15% (0.15).Thank you, it is clear now!
Could you explaine another problem, please.
(2015 Bpp RK p. 30, question 20.9)
Material X – there is only 300 on hand, the RK says that the selling sprice for this materisl should be 3 on the total quantity that is needed. Why isn’t it – 300*3+200*7?
Thank you again!
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