£3,000,000 *1/3 is gas charge=£1000,000 which is 62.5% for last year, £1000,000/0.625=£1600,000. Contractor budget is 2000+1600=£3600,000 overall 8% reduction due to probabilities n economic conditions= £3312,000. Correct me if wrong!!
Right I have done the same for cost per production unit for each driver is $3 (4.25*9000)+1000 fixed cost rise+1750 fixed from high low method=$41000 Relevant cost of Q is (30+20) labor and V.O.H + 15 contribution lost of diversity =$65 Question 31 A) $972000 incremental budget