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Q 31. B)
£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
I did 2667 units of Z