bpp kit Q 169 Robber

This topic has 3 replies, 2 voices, and was last updated 2 years ago by IAW3005.

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February 28, 2024 at 10:58 am #701367
Uzmaan
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Sir, the 4th note….what i understood was, the variable cost has to be divided by 500 and multiplied by 400…why is the answer in the other way sir? and also sir, why is the 4000 and 6000 of fixed costs included?
February 28, 2024 at 10:53 pm #701409
IAW3005
Keymaster
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The number of setups are increasing effectively
They are going from 160 [80000 units / 500] to 200 as (80,000/400)
So this will cost more
22k after fix costs to 27.5k and so on
In the answer it states you can include or exclude the fix o/h
February 29, 2024 at 8:51 am #701439
Uzmaan
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- Topics: 14
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Sir, so the variable cost has to increase by new batch size of 1.25 (500/400)?
February 29, 2024 at 12:08 pm #701457
IAW3005
Keymaster
- Topics: 4
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Set ups are when you prepare machines for use in processing
So the smaller the batch size the more machines have to be set up
Do you understand?
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