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Hi,
For part A the answer asks you to assume there is only 1 person working in the Purchasing Department? They don’t specify the number of people working in the department, I think its hard for students to guess it.
I just find this the hardest thing about this exam, the number of assumptions you need to make.
Any help in dealing with this?
Regards,
Ed
The answer does not depend on assuming that there is only one staff member.
The question says that averages wages per person in purchasing is $32,000 per 5 day week. 8.5 days per week are spent on handling delivery queries. The 8.5 days could be made up from 2 people each working 4.25 says on this or, say, three people working 2,3,3.5 days etc.
Whatever the number of people, 8.5 days of their time is given over to handling queries so the annual cost is 32,000 x 8.5/5.
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