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House Co also plans to manufacture 90 sofas in June.
Materials 10m of fabric @$50 per meter =$500
How many metres of fabric should be purchased if 10% of material is wasted during production process?
Answer
90 * 10m = 900m
Plus waste 100m
Purchase 1000mSir John, I don’t understand how they got the 100m
For every 100 metres of fabric the buy, the 10% (i.e. 10 metres) will be wasted and only 90 meters will be available for production.
Putting it the other way round, for every 90 needed for production they will need to buy 100.
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