[tariqilyas]

you have to show calculation.. Because calculation have its own marks

[tariqilyas]

6000 is total contribution @ that point.. How it is calculated?
$80 is selling price and it is expected that 80 passengers will travel so total revenue $6400 now less variable cost from it..$5 per passenger and 80 passenger will cost $400
so total contribution 6000..
This is how he came up with this
hope this will help you

[tariqilyas]

let me try to help you..
If company will buy small van(100 crate) they will be unable to meet demand either 120 or 190 so at this point sale can not exceed $1000(100*10)
But if they buy medium van (150 crates) lower demand can be full filled but higher cannot be so sales will be 1200 and 1500
and large van can full fill both demand
hope it will help

[tariqilyas]

standard lab time is 3hrs per unit and 19200 units were produced
so according to std 19200 units should take 57600 hrs(19200 * 3hrs)

[tariqilyas]

lower of original cost and Disposal cost is used

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