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jun2008 q 4;i don’t understand how they got some items in the answer like 1;paper(400g@$2/kg)and so on.2.production level;how is it 1000000 and 120000 how did they get this figures,because i did not see them in the
question,3;how did they got figure on driver,eg property cost,quality control,production set up.sir please help me to understand it.thanksIn answer to your questions:
1. the information is all given in the notes above part (c) of the question. (For example, note 1 says that paper for CB costs $4 per kg, and that a CB uses 400g)
2. The last line in the question above part (c) says that the output of CB is 1,000,000 and that for TJ it is 10,000 per month, which is 120,000 per year.
3. The first page of the question tells you what the activity drivers are (machine hours, number of inspections etc..) and the answer to part (c) explains how the numbers are calculated.
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